Mumbai-based FMCG company Onest gets set for D-Street debut

• The IPO comprises a fresh issue of ₹77 crore and an offer for sale (OFS) of up to 3.25 million shares.
• Most of the proceeds will be used to fund working capital requirements and general corporate purposes.
• It has products across home, personal care, food and household products catering to B2B2C and B2B customers.
  

Mumbai-based FMCG company Onest has filed its Draft Red Herring prospectus (DRHP) with capital market regulator Sebi to raise funds via a public issue.

The Initial Public Offering (IPO) with a face value of ₹10 comprises a fresh issue of ₹77 crore and an offer for sale (OFS) of up to 3.25 million shares by promoter and other shareholders.

As much as ₹60 crore of the proceeds from the fresh issue will be utilised to fund working capital requirements and general corporate purposes.

About the company

The company is primarily engaged in the Fast Moving Consumer Goods (FMCG) market with a range of home care and personal care products, food products and household products catering to B2B2C and B2B customers

Some of its brands include Florona, Hunk, Brio, Freshia, 33 Varino, Endiro, Ekon and Delight.

The offer is being made through the book building process, wherein not less than 75% of the offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers. Not more than 15% of the offer shall be available for allocation to non-institutional investors and not more than 10% shall be available for allocation to retail investors.

Financials & other details

In the last financial year (FY23), the company’s consolidated revenue from operations increased 70.94% to ₹184 crore from ₹107.82 crore a year ago. This is primarily due sale of goods pursuant to increase in new stock keeping units in the product portfolio and entries in new countries. Its net profit rose 227% from ₹2.44 crore in FY22 to ₹8 crore in FY23.

Onest is also involved in the non-FMCG sector, offering a variety of industrial products to B2B customers. It is an emerging player to build a value brand in the home care and personal care industry, the company says.

The company exports to Africa, Middle Easter, Latin America, SAARC, ASEAN, and CIS countries, with its products reaching over 57 nations.

Onest also successfully sold its products in nine states and a union territory in India, with a network of 23 dealers. It maintains three warehouses in India, and has expanded its presence in the domestic market via its subsidiary, Onest EasyLife LLP.

The company’s home and personal care product portfolio includes skincare, hair care, aerosol and perfume, baby care, OTC, oral care, men care, home cleaning, and home fragrance items.

It also has presence in confectionery, biscuits, canned food, breakfast cereals, tea, coffee, and other beverages; as well as batteries, bulbs, incense sticks, lighters, tapes, blades, and other stationery products.

It curates its brand portfolio by identifying market gaps and diverse consumer requirements across various price points. In response, the company develops brands such as Florona, Hunk, Brio, Freshia, Varino, Endiro, Ekon, and Delight to cater to these specific needs and preferences.

Monarch Networth Capital and Unistone Capital Private are the book running lead managers and Link Intime India is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.