A significant block deal of approximately ₹238 crore took place on December 5, involving around 62.90 lakh shares or a 2% stake in Honasa Consumer, the parent company of Mamaearth. This transaction led to a positive reaction in the company’s stock, which traded 2.7% higher at ₹394.55 on the NSE at 9.30 am.
What to know: Although the identities of the parties involved in the deal were not immediately clear, CNBC Awaaz suggests that Fireside Ventures planned to sell a 1.9% stake in Honasa Consumer, valued at ₹230 crore.
Fireside Ventures, a venture capital fund specializing in consumer brands and an early investor in Mamaearth, held a 7.57% stake in Honasa Consumer according to the latest shareholding data.
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Since its modest debut on the stock market in November with a 2% premium over its IPO price, Honasa Consumer’s stock has risen over 16%.
Brokerage firm Jefferies initiated coverage of the stock with a “buy” rating and set an ambitious price target of ₹520, predicting 27% growth over the next three years. The firm expects double-digit growth in the Beauty and Personal Care segment, alongside steady online sales. However, Jefferies also cautions of risks including strong competition, potential mergers and acquisitions, and slow brand expansion.
Price Action: Honasa Consumer Ltd. shares reacted positively to the deal with the stock trading 2.7% higher at ₹394.55 on the NSE at 9.30 am, however since, the stock has dropped 1.8% to ₹377.20 at the time of writing.
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