Honasa Shares Rally 10% After Founder Varun Alagh Raises Stake

SUMMARY

Shares of Honasa rallied 10% to INR 287.85 apiece on the BSE during the intraday trading session today (December 4)

This comes at a day after Varun Alagh raised his stake in the company to 31.93%

In a filing with the stock exchanges, Honasa Consumer said that CEO Alagh bought additional stake in the Delhi NCR-based company for INR 4.5 Cr.

Shares of Mamaearth’s parent company Honasa rallied 10% to INR 287.85 apiece on the BSE during the intraday trading session today (December 4) after founder Varun Alagh raised his stake in the company to 31.93%.

In a filing with the stock exchanges, Honasa Consumer said that CEO Alagh bought additional stake in the Delhi NCR-based company for INR 4.5 Cr.

With his stake increasing to 31.93% from 31.88% earlier, promoters Ghazal Alagh and Varun now have a 35% shareholding in Honasa.

The stake purchase by Alagh comes at a time when Honasa and its flagship brand Mamaearth are said to have hit the growth wall and a freefall in the stock’s price has spooked investors. On a year-to-date basis, the stock has tanked over 32%.

At the time of writing, the company’s market capitalisation stood at INR 9,350.06 Cr (around $1.1 Bn).

Honasa posted a consolidated net loss of INR 18.6 Cr in Q2 FY25. The company reported a net profit of INR 29.4 Cr in the year-ago quarter and INR 40.3 Cr in the preceding June quarter.

(The story will be updated soon)

Source: Inc42 Media