The Mamaearth IPO consists of a new equity share offering worth up to $400 million.
The company attained the unicorn status after a fundraising round in January led by Sequoia Capital and raised $52 million at a valuation of $1.2 billion.
As per the company's draft red herring prospectus, the fresh issue size is up to Rs 400 crore, and the OFS component by a number of outside investors and individual shareholders is up to 46,819,635 equity shares.
The major stockholders like the Alaghs, Sofina Ventures SA, Evolvence, Fireside Ventures, Stellaris Venture Partners, Snapdeal founder Kunal Bahl, Bollywood actress Shilpa Shetty Kundra, Rishabh Harsh Mariwala, and Rohit Kumar Bansal will dilute their interests. Sequoia Capital is not participating in the OFS.
The overall size of the IPO might range between Rs 2,400 crore and Rs 3,000 crore, while the exact quantum at the time of listing will depend on final assessments.
The net proceeds of the IPO will be used for advertising expenses to improve brand visibility and awareness, setting up new exclusive brand outlets, investment in BBlunt for setting up new salons, general corporate purposes, and inorganic growth.
The net revenues from the IPO will be utilised for general company purposes, inorganic growth, the creation of new, exclusive brand outlets, investments in BBlunt to create new salons, advertising costs to increase brand visibility and awareness.