Hoanasa earlier planned to utilise the prospects of the IPO in its marketing initiatives
Ghazal Alagh and Varun Alagh-led Mamaearth denied reports that the New Delhi-based start-up was withdrawing its initial public offering (IPO) plans. According to multiple media reports, the company claimed that its parent firm Honasa Consumer is in the process of engaging with SEBI on this issue.
The reaction came after multiple media reports claimed that the beauty and wellness company put on hold its IPO plans due to volatile market conditions. However, its co-founder Varun Alagh refuted these speculations.
In an interaction with CNBC TV18, Alagh said, “The reports are largely baseless. We are still in the process and are engaging with the banks and more importantly, the regulator and are awaiting approval on the draft prospectus that we have filed.” He also added that the company would have a time period of 12 months to file the Red Herring Prospectus (RHP) after getting the approval of SEBI.
When asked whether there would be any change in the D2C brand's PO size as well, Alagh replied in the negative. “The reports are largely baseless. We are still in the process and are engaging with the banks and more importantly, the regulator and are awaiting approval on the draft prospectus that we have filed,” he noted.
Hoanasa earlier planned to utilise the capital raised from the IPO for its marketing initiatives and strengthen its offline presence across the country.
Mamaearth stepped into the unicorn club last year after raising $52 million from Sequoia Capital at a valuation of $1.2 billion. It also turned profitable in FY22.