VC Fund Fireside Ventures likely to sell its 1.9% stake in Honasa Consumer

The venture capital firm is presenting 61 lakh shares, representing a 1.9% stake worth ₹230 crore,  in the personal care products manufacturer.  The designated floor price for the sale has been established at ₹368.7-384.1 per share, reflecting a potential discount of up to 4% from the prevailing market price. Kotak Securities is the broker to the deal, the reports cited.

The share price of Honasa Consumer was down 3.85% to ₹384.80 per piece on Monday, against previous close at ₹400 on Friday last week.

Honasa stock has gained nearly 14% after its listing on the Indian stock market. Since its debut on November 7, the stock has experienced significant volatility. Initially priced at ₹324 during the initial public offering (IPO), it debuted at a 2% premium, reaching ₹330 and hitting a high of ₹340.45 on the intraday basis. However, the initial enthusiasm waned rapidly as the price plummeted to as low as ₹256 on the BSE within two days.

The stock successfully recovered from its downturn after receiving a positive endorsement from Jefferies India. The brokerage commenced coverage on the stock, assigning it a “buy” rating and setting a price target of ₹520. Jefferies anticipates that Honasa Consumer will achieve industry-leading growth, projecting a 27% increase over the next three years.

In the previous month, the company unveiled its financial results for the September quarter, revealing a year-on-year revenue surge of 5.5% and a profit growth exceeding 13%.

The company reported a 93.4% year-on-year (YoY) jump in consolidated net profit at ₹29.4 crore for the second quarter that ended September 30, 2023.

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Updated: 04 Dec 2023, 07:46 PM IST