ICICI Prudential Raises Its Stake in Honasa to 5.48%

ICICI Prudential Life Insurance Company has increased its stake in Honasa Consumer, the parent company of Mamaearth, by acquiring an additional 46.91 lakh shares. Prior to this acquisition, ICICI Prudential held a 4.03% stake in Honasa, which has now risen to 5.48%, equivalent to 1.77 crore shares as of September 12, up from 1.31 crore shares previously. As of the June quarter of 2024, ICICI Prudential’s stake stood at 3.81%.

This acquisition followed the sale of Honasa shares worth INR 1,601.68 crore by investors including Peak XV Partners, Fireside Ventures, Stellaris Venture Partners, and Sofina, through bulk deals. In these transactions, Morgan Stanley bought 24.17 lakh shares for INR 119.67 crore, while ICICI Prudential purchased 28.78 lakh shares for INR 142.49 crore. Stellaris Venture Partners reduced its stake in Honasa from 5.78% to 2.89% following the bulk deal.

These developments coincide with an upward trend in Honasa's stock price, driven by its strong financial performance. On September 10, Mamaearth’s parent company's stock reached a new all-time high of INR 546.5 per share. In the June quarter of FY25, Honasa reported a 62.9% increase in profit after tax, reaching INR 40.2 crore, compared to INR 24.7 crore in the same period the previous year. Its operating revenue grew by 19.3% year-on-year to INR 554 crore. Analysts have been optimistic about Honasa's multi-brand strategy, with Emkay setting a price target of INR 525 by June 2025.