This FMCG scion is all set to gain a windfall from Honasa Consumer IPO

• Rishabh Mariwala stands to make as much as ₹184 crore if the IPO shares are subscribed at the upper end of the price band.
• Honasa promoter Varun Alagh is expected to be richer by ₹103 crore at the upper end of the price band.
• Shilpa Shetty Kundra is all set to make as much as ₹45 crore from the share sale.
  

Actress and brand ambassador of Mamaearth, Shilpa Shetty, is all set to gain a windfall from its parent company Honasa’s initial public offer (IPO). However, she might not be the shareholder who will make the most from one of India’s most talked about IPOs this year. It’s Rishabh Harsh Mariwala, the son of Marico owner Harsh Mariwala, who stands to gain as much as ₹184 crore if all the shares are subscribed at the the upper end of the price band of ₹308-324.

Rishabh Mariwala was an early investor in the D2C brands company, and acquired shares at ₹6.05, as per the company’s DRHP. He is also selling the most shares – 5.7 million – in the upcoming share sale and that makes him the biggest gainer from the IPO.


Rishabh Mariwala heads Sharpp Ventures which manages Mariwala family office, but he has also been keen on the beauty and the personal care sector. He runs Kaya which is known for skin clinics and products. He had also founded Soap Opera N More to market bath and body care products. This is in addition to introducing luxury skin products under the brand PureSense.

The IPO, which opens on October 31 and ends on November 2, will see the promoter of the company, Varun Alagh sell 3.18 million sharese get richer by approximately ₹103 crore. However, his wife and co-founder of the company, Ghazal Alagh of Shark Tank fame, is selling only 1 lakh shares for ₹3.2 crore.

Name of the selling shareholder	No of shares being sold	Weighted cost of acquisition	Possible gains from share sale (at upper end of price band)
Varun Alagh	3,186,300	Negligible*	₹103 crore
Ghazal Alagh	100,000	Negligible*	₹3.2 crore
Rishabh Harsh Mariwala	5,700,188	6.05	₹184.6 crore
Shilpa Shetty Kundra	1,393,200	41.86	₹45 crore
Kunal Bahl	1,193,250	3.21	₹38.6 crore
Rohit Kumar Bansal	1,193,250	3.21	₹38.6 crore

*Ghazal and Varun Alagh are promoters

Bahl & Bansal bag a better deal

Snapdeal founders and serial investors Kunal Bahl and Rohit Kumar Bansal will also be selling 1.19 million shares each in the IPO. They will make around ₹38.5 crore each. It Is noteworthy that all these calculations are made at the upper end of the price band. They would also probably be making more profit from the investment than other selling shareholders as their weighted cost of acquisition is at ₹3 per share.

Shilpa Shetty Kundra who stands to make as much as ₹45 crore from the share sale, has purchased the stock at a slightly higher cost. The weighted cost of acquisition for her is at ₹41 per share.

The other selling shareholders include Fireside Ventures Fund, Sofina and Stellaris. The IPO stands to raise anywhere between ₹1,635 crore to ₹1,701 crore. It will open on October 31 and close on November 2.