Direct-to-Consumer skincare startup Mamaearth has stalled plans for its Initial Public Offering (IPO) amid weak market conditions according to a report by Reuters. Mamaearth’s parent company Honasa Consumer Limited has taken the decisions as Indian startups try to wait through the dry market spell.
Honasa Consumers Ltd had filed its IPO papers with SEBI in December last year, with a plan to raise $200 to $300 million through the sale of new and existing equity shares, valuing the skincare startup at a whopping $3 billion. The company has until December this year to get SEBIs approval on its IPO filing.
Mamaearth co-founder and CEO Varun Alagh have said that they are in talks with SEBI for the final approval of their offer. He also said that the company isn’t looking for “optimizing for short-term valuations, we are in this for the long term”.
The market has been choppy for recently listed IPOs with 10 companies below their listing price while only one company, Divgi Torq Transfer Systems is trading above its listing price. Fashion retailer Fab India and jewellery retailer Joyalukkas scrapped their IPOs amid the poor market conditions.
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