News

Published: December 5, 2023
Updated: December 5, 2023

Mamaearth's Market Moves: Fireside Ventures Set to Unload Stake in Honasa Consumer

Unlocking Potential: Fireside Ventures to Sell 1.9% Stake in Honasa Consumer

As the market gears up for another dynamic day, the spotlight is on Honasa Consumer Ltd. Reports have surfaced indicating that Fireside Ventures, a public shareholder, is poised to offload 61 lakh shares in the parent company of Mamaearth. This move equates to a significant 1.9% stake in the company.

Market Ripple: Honasa Consumer Shares Witness a Dip

In an otherwise robust stock session on Monday, Honasa Consumer shares closed 4.04% lower at Rs 383.50. The prevailing market sentiment will be under scrutiny as 61 lakh shares, valued at Rs 234 crore at the current price, are set to enter the market.

Fireside Ventures' Position: A Snapshot of Ownership

Fireside Ventures currently holds a substantial 7.57% stake in Honasa Consumer, amounting to 2,43,54,922 shares as of September 30. The stake, valued at Rs 934 crore as of Monday's closing price, adds a layer of complexity to the upcoming block deal.

Market Debut Triumph: Mamaearth's Stellar Performance

Mamaearth, the offspring of Honasa Consumer, has been on an upward trajectory since its market debut on November 7. At the prevailing price, the shares have surged by an impressive 18.36% over the issue price of Rs 324, capturing the attention of investors.

Block Deal Dynamics: Key Details Unveiled

Sources suggest that the block deal, scheduled for December 5, will be orchestrated with a floor price ranging between Rs 368.70 and Rs 384.10. This strategic move, rumoured to involve Kotak Securities as the broker, hints at a potential discount of up to 4%.

Employee ESOPs and Market Buzz: Navigating Speculations

Earlier reports hinted at Mamaearth employees contemplating the sale of ESOPs worth Rs 150 crore this week. However, the company denied these speculations, injecting an air of uncertainty into the unfolding narrative.

The Unfolding Story: Market Intrigue Continues

As Fireside Ventures prepares to reshape its investment portfolio, and Mamaearth continues its ascent, the market awaits the outcome of this strategic block deal. The interplay of stake sales, market dynamics, and employee-driven speculations paints a captivating picture of the evolving landscape.

Accordingly, the market remains a theatre of anticipation, where every transaction unravels a new chapter, and investors brace for the next plot twist in Mamaearth's journey.