The IPO in which the bazzigar fame made a killing.

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Shilpa Shetty Kundra's investment in Hoansa Consumer Limited.


Honasa Consumer Limited is the company that operates the brand Mamaearth.

On 16 May, 2018 in a private placement Honasa Consumer Limited had allotted 290 equity shares of face value Rs. 100 each at an issue price of Rs. 25,889 per share to Shilpa Shetty Kundra was allotted.

Subsequently, she sold 182 equity shares in a secondary transaction and there was a split in the face value of the share from Rs.100 per share to Rs. 10 per share.

Number of equity shares held before the initial public offer -

As on 10 May, 2022 she held 108 equity shares of face value Rs. 10 each.

Thereafter, she was allotted 16,23,527 shares in the following manner –


12,899 equity shares were alloted as bonus shares for every 1 equity share held. 
She held 108 shares as on the date of bonus issue. Hence, on account of bonus issue 13,93,092 equity shares were allotted to her on 11 May, 2022. [108*12,899=13,93,092]

Thereafter, on 13 September,2022 she was allotted 2,30,435 shares at a consideration of Rs. 262 per share.

Hence, she held 16,23,635 shares before the initial public offer.
[108 + 13,93,092 + 2,30,435 = 16,23,635 ]

Total investment to acquire 16,23,635 shares –


Note - There is no cash outflow in the hands of the shareholder in case of bonus issue of shares by the company.

Total investment to acquire 16,23,635 shares was Rs. 6,31,69,874.

Average cost of acquisition per share –


Applying the formula for calculating a simple average, we determine that the average cost of acquiring each share, at Rs. 39, resulting from dividing the total acquisition cost of Rs. 6,31,69,874 by the number of shares, which is 16,23,635.

Return on investment -

The IPO's upper band issue price stood at Rs. 324 per share.

As indicated in the Red Herring Prospectus (RHP), the weighted average cost of acquiring each equity share is Rs. 42.

By deducting this weighted average cost from the IPO issue price, which is Rs. 324, the gain per equity share equals Rs. 282.

This results in an approximate return on investment of 671%, calculated based on the gain per equity share of Rs. 282 compared to the weighted average cost of acquisition per equity share of Rs. 42.

Consideration received excluding cost during the initial public offer of the shares -

On sale of 13,93,200 shares at an issue price of Rs. 324 per share, the consideration on sale of shares during the IPO (excluding cost) amounts to Rs. 45,13,96,800. [13,93,200 * 324 = 45,13,96,800]

Number of shares held post initial public offer -

Shilpa Shetty Kundra held 16,23,635 shares and during the IPO she had offered 13,93,200 shares for sale. Hence, post IPO she subsequently held 2,30,435 shares. [16,23,635 - 13,93,200 = 2,30,435]

Wealth generated by Shipla Shetty Kundra from Hoansa Consumer Limited-


The consideration from the sale of shares during the IPO, excluding costs, amounts to Rs. 45,13,96,800.

Additionally, considering a listing price of Rs. 317 per share, the value of the 2,30,435 shares retained post-IPO would be Rs. 7,30,47,895.

Thus, the total wealth generated, excluding costs and taxes, from both the shares offered for sale during the IPO and the value of the retained shares post-IPO, sums up to Rs. 52,44,44,695 [45,13,96,800 + 7,30,47,895].

Conclusion -

Shilpa Shetty Kundra's involvement with the brand mamaearth extends beyond conventional celebrity endorsements. She not only promoted its products but also took part in the success story of the company by being an early investor in the company.

This demonstrates her level of commitment, beyond simply appearing in advertisements and delivering scripted lines about the product.

Source -

1) Red Herring Prospectus of Honasa Consumer Limited - https://honasa.in/wp-content/uploads/2023/10/Red-Herring-Prospectus.pdf

- Page 1 – Number of shares offered for sale by Shilpa Shetty Kundra and weighted cost of acquisition

- Page 93 and 94 – Number of shares allotted to Shilpa Shetty Kundra

2) Issue price and listing price of Honasa Consumer Limited - https://www.chittorgarh.com/ipo/mamaearth-ipo/1551/

Thank You

Happy Reading !


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