Mamaearth block deal
Sellers and buyers were not immediately known but Fireside Venture is the likely seller. It owned a 7.57 percent stake in Honasa Consumer, the company’s November 3 shareholding data showed
A Rs 238-crore block deal involving around 62.90 lakh shares, representing a 2 percent stake in Mamaearth parent company Honasa Consumer took place on the exchanges on December 5.
Shares of the company reacted positively to the deal and at 9.30 am, they were trading 2.7 percent higher at Rs 394.55 on the NSE.
Even though Moneycontrol could not immediately identify the parties involved in the transaction, CNBC Awaaz had reported that Fireside Ventures was looking to pare a 1.9 percent stake in the company, worth a total of Rs 230 crore.
As per the report, Fireside was looking at a floor price in the range of Rs 368.7 to Rs 384.1 for the stake sale.
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Fireside Ventures is a venture capital fund focused on the consumer brand sector. The venture capital fund was also the first investor in Mamaearth during its seed funding round. As per the company’s latest shareholding data, Fireside Venture owned a 7.57 percent stake in Honasa Consumer.
Honasa Consumer made a lacklustre debut on the bourses in November, listing at a mere 2 percent premium to its IPO price. Since its listing, the stock has surged over 16 percent.
Brokerage firm Jefferies initiated coverage on the stock with a “buy” rating and a bullish price target of Rs 520. Jefferies anticipates a 27 percent growth for the company over the next three years. In addition, the brokerage also highlighted projections of double-digit growth in the BPC (Beauty and Personal Care) segment, with stable online sales.
Jefferies also warned of key risks such as intense competition, potential mergers and acquisitions (M&A), and a gradual pace of brand expansion.
