In a significant move, employees of Mamaearth’s parent company, Honasa Consumer Care, are poised to sell shares worth Rs 150 crore in a block deal this week. The anticipated block deal, set to be brokered by Kotak, is expected to be executed at a 5-7 percent discount to the market price of Rs 477.10.
While Moneycontrol could not independently verify this report, sources informed CNBC-Awaaz about the potential ESOP (employee stock ownership plan) pool deal involving approximately 31 lakh shares. Since the listing, Honasa Consumer shares have experienced a remarkable 47 percent surge from the issue price of Rs 324. On November 24, the stock closed 12 percent higher on the NSE.
As per the prospectus, Honasa Consumer has granted stock options under two schemes – ESOP 2018 and ESOP 2021. The upcoming block deal follows Honasa Consumer’s impressive financial performance, with a 93 percent surge in consolidated net profit at Rs 29 crore for the quarter ending September 30. In comparison, the company reported a consolidated net profit of Rs 15 crore in the corresponding period last year.
The firm’s consolidated revenue from operations also displayed robust growth, rising by 21 percent to Rs 496 crore in Q2FY24 compared to Rs 410 crore in the year-ago period. Jefferies, a foreign broking firm, has been a vocal supporter of Honasa Consumer’s stock. In a note on November 23, Jefferies added Honasa to its model portfolio, replacing Marico, and set a target price of Rs 530.
Jefferies emphasized the company’s strong growth trajectory, citing consistent 30 percent+ revenue growth with steady margin expansion. The note highlighted Honasa Consumer’s focus on premium customers and its resilience to potential economic slowdowns and inflation.
