Ghazal and Varun Alagh state, “We have not quoted or subscribe to the valuation numbers that are been reported in various posts on social media.”
The owners of the FMCG firm Mamaearth responded to criticism Mamaearth was receiving on social media and from financial experts for what they claimed were overinflated values prior to its IPO on Wednesday. They did so through a thread on Twitter.
Co-founder Ghazal Alagh began her Twitter thread by writing, “Sharing a thread to cast some light on all the hoopla regarding valuations around our future IPO.”
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“As is customary, there is no mention of valuation in our DRHP. The process of valuation discovery will develop over time as we have more in-depth discussions with the investing community. The valuation figures that are mentioned in numerous posts on social media have not been quoted by us, nor do we subscribe to them. In the same loving manner that we have nurtured our children, we have worked hard to build this business and our brands “Alagh tweeted at a time when Twitter users criticized the company for increasing its valuation by three times to $3 billion in just a year.
The Alagh pair compared Mamaearth to their “children” and promised to remain in the “company for times to come”; this may be taken as a promise.
“As a parent who never leaves their child’s side, we fully believe in establishing our brands and this business for the foreseeable future. Since we ourselves could not find the ideal items for our baby, we founded Mamaearth with the intention of offering toxic-free solutions for infants. In order to get to the point where we are now with 6 wonderful brands servicing millions of Indian consumers, God has been good to us, luck has been on our side, consumers have liked us, and our staff has put in crazy amounts of work “Alagh tweeted.
Honasa Consumer Ltd., the owner of modern FMCG brands like Mamaearth and The Derma Co., submitted preliminary paperwork with the capital markets regulator Sebi last week in order to raise money through an IPO (IPO).
According to the draft red herring prospectus, the IPO consists of a fresh issue of equity shares worth Rs 400 crore and an offer-for-sale (OFS) component of 4,68,19,635 equity shares by promoters, investors, and other selling shareholders (DRHP).
Promoters Varun Alagh and Ghazal Alagh, investors Fireside Ventures Fund, Sofina, Stellaris, Kunal Bahl and Rohit Bansal, Rishabh Harsh Mariwala of FMCG company Marico, and Bollywood celebrity Shilpa Shetty Kundra are among those selling shares in the OFS. The issue’s book-running lead managers are JM Financial, Citigroup Global Markets India, Kotak Mahindra Capital Company, and JP Morgan India Pvt Ltd.
Even in the middle of the storm, we’ll keep putting in the effort, coming up with new ideas, and creating a company that our future generations will be proud of, tweeted Alagh.
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