The ₹643.4 crore block deal in Honasa Consumer Ltd has been successfully completed, with 1.4 crore shares (4.4% of outstanding equity) changing hands at an average price of ₹450 per share. As reported by CNBC TV18, the transaction was executed after market opening on Tuesday, September 29, though the official buyers and sellers remain undisclosed. The deal represents a significant upsize from the originally reported ₹400 crore offer, with the floor price of ₹450 per share being maintained throughout the transaction. According to latest reports, the floor price represents a discount of up to 3.4% to Monday's closing price, indicating the deal was executed at a slight premium to market levels. The transaction was substantially larger than the size indicated in earlier reports, with about 4.4% equity worth ₹643.4 crore changing hands. Jefferies acted as the sole bookrunner for the transaction, as per Bloomberg data cited in the source.
Honasa Consumer shares plunged 5.24% to close at ₹441.65 amid high volumes following the large block deal execution. As per Moneycontrol, the stock opened lower and continued declining throughout the session, making it one of the top losers on both the BSE 500 and Nifty 500 indices. The counter was also among the most actively traded stocks on the BSE and NSE during the session. Despite the decline, the stock has maintained strong performance with a 59.4% year-to-date gain so far in 2026, significantly outperforming the 13.3% decline in the Nifty 50 over the same period. At the current price, the Mamaearth parent's market capitalisation stands at around ₹14,750 crore. The selling shareholders will be subject to a 45-day lock-up period on further share sales following the transaction completion.
The block deal involved major institutional investors with specific shareholding percentages. As reported by CNBC TV18, Peak XV Partners Investments VI held a 14.8% stake in the company, while Sequoia Capital Global Growth Fund III - US/India Annex Fund owned 3.44%. Redwood Trust likely held less than 1% stake, which explains why stock exchange data does not show its exact shareholding. According to latest reports, Peak XV Partners sold 1.07 crore shares (3.3% stake) for ₹484.23 crore at ₹450.22 per share, while Sequoia Capital sold 25.02 lakh shares (0.76% stake) for ₹112.6 crore at ₹450 per share. The total selling stake represented 2.73% of the company's equity, with the remaining 64.53% held by public shareholders and 35.47% by promoter entities as of the June quarter. As per The Hindu BusinessLine, Franklin Templeton Mutual Fund acquired 33.33 lakh shares (1% stake) for ₹150 crore at ₹450 per share, while ICICI Prudential Life Insurance Company bought an additional 17.77 lakh shares (0.6% stake) for ₹80 crore. Aditya Birla Sun Life Mutual Fund and Norges were also cited as buyers in the deal.
Honasa Consumer reported robust first quarter earnings that contributed to the positive market sentiment. According to CNBC TV18, the company's net profit more than doubled to ₹90.2 crore in the June quarter from ₹41.3 crore in the previous year. Revenue increased 27% to ₹756 crore from ₹595.2 crore, while EBITDA surged to ₹110.1 crore from ₹45.7 crore with margins expanding significantly to 14.57% from 7.68% year-on-year. The company, parent to beauty and personal care brand Mamaearth, continues targeting ₹5,550 crore revenue by FY31 with focus on core categories that currently account around 80% of revenue. As per The Hindu BusinessLine, HDFC Securities estimated revenue growth of 25% for the September quarter of FY27, with an operating profit margin of around 12%. The company also plans to build at least two more brands with revenue of ₹500 crore each across its portfolio, including its other brands like Aqualogica, BBlunt, Dr Sheth's and Reginald Men.
The participation of domestic institutional investors comes as Honasa Consumer continues to expand its distribution network across offline retail channels. In a research note, HDFC Securities highlighted the company's focus on improving outlet productivity and expanding its direct distribution reach. The brokerage noted that Honasa currently reaches around 1.2 lakh outlets directly and is targeting an expansion to 3 lakh outlets over the next three years. Despite Tuesday's decline, Honasa Consumer maintains strong fundamentals and growth prospects. Equirus Securities maintained a positive view on the company, arguing that recent improvements reflect execution repair rather than weak base benefits. The brokerage expects growth support from better offline execution, greater contribution from focus categories, and scaling up of younger brands. According to Equirus Securities, Mamaearth is expected to grow at 10% CAGR after its reset, while The Derma Co is projected to expand at 20% CAGR supported by new product extensions and increasing offline presence. Equirus initiated coverage with a LONG rating and a December 2027 target price of ₹595, valuing the company at 48 times its December 2028 estimated earnings per share of ₹12.4. The brokerage expects EBITDA margin to expand by 314 basis points to 13% by FY29E, supporting an improvement in return on equity to 22% by FY29E.
