Peak XV Partners Divests 10% Stake in Mamaearth's Honasa Consumer for Rs 1,601 Crore

Peak XV Partners, previously known as Sequoia Capital India & SEA, along with four other entities, sold a 10% stake in Honasa Consumer, the owner of the Mamaearth brand. The transaction, valued at Rs 1,601 crore, was executed through open market deals. ICICI Prudential Life Insurance and Morgan Stanley were among the buyers.

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Stake Divestment Details

Peak XV Partners, via its subsidiary Peak XV Partners Investments VI, sold over 1.23 crore shares, representing a 3.81% stake in Honasa Consumer. Fireside Ventures offloaded 65.83 lakh shares or a 2.03% stake in the Gurugram-based company. The data from the National Stock Exchange (NSE) confirmed these transactions.

Other Sellers and Their Stakes

Brussels-based Sofina Ventures SA divested 60.15 lakh shares, equating to a 1.85% stake in Honasa Consumer. Stellaris Venture Partners sold 45.30 lakh shares, which is a 1.4% stake. Additionally, Sequoia Capital Global Growth Fund III-US/India Annex Fund disposed of 28.71 lakh shares or a 0.88% stake in the company.

Impact on Shareholding

Following these sales, Peak XV Partners' holding in Honasa Consumer decreased from 18.69% to 14.88%. Fireside Ventures' stake reduced from 4.28% to 2.25%, while Sofina's shareholding dropped from 5.16% to 3.31%. Sequoia Capital Global Growth Fund's stake fell from 4.35% to 3.47%, and Stellaris Venture Partners' holding decreased to 3.35%.

New Acquisitions

ICICI Prudential Life Insurance acquired 28.78 lakh shares or a 0.88% stake in Honasa Consumer, while Morgan Stanley Asia Singapore purchased 24.17 lakh shares of the company. These shares were bought at an average price of Rs 495 each, bringing the combined deal value to Rs 262.17 crore.

The shares involved in these transactions were sold within a price range of Rs 495.01-496.12 apiece, resulting in a total transaction value of Rs 1,601.71 crore.

Previous Transactions

Last week, Peak XV Partners had also reduced its stake by selling over a 22% stake in Indigo Paints for Rs 1,557 crore.

Shares of Honasa Consumer fell by 5.36%, closing at Rs 494 each on the NSE after these transactions.

Details about other buyers of Honasa Consumer's shares remain undisclosed.

Peak XV Partners is a prominent venture capital and growth investment firm operating across India and Southeast Asia.

The recent divestments reflect significant changes in the ownership structure of Honasa Consumer and indicate strategic moves by major investors in the market.