Onest IPO: FMCG Firm Files SEBI Draft Papers for Public Issue
Mumbai-based Fast Moving Consumer Goods (FMCG) company, Onest Limited, has taken a significant step towards raising funds by submitting its Draft Red Herring prospectus (DRHP) to the capital market regulator SEBI for its forthcoming initial public offering (IPO).
The Onest Limited IPO, with a face value of Rs. 10 per share, comprises a fresh issuance worth Rs. 77 crore, along with an offer for sale (OFS) by the company’s promoters and other selling shareholders, involving up to 3.25 million shares.
Among the selling shareholders, Pawan Kumar Gupta plans to offer up to 2.66 million equity shares, Glentrade DMCC will offer up to 4.69 lakh equity shares, Ramesh Girdharilal Lulla aims to sell up to 62,250 equity shares, Rahul Porwal will offer up to 30,000 equity shares, Pankaj Jain plans to sell up to 15,000 equity shares, Piyush Dungarpuria aims to sell up to 7,500 equity shares, and R Sambhu Kumar intends to offer up to 1,875 equity shares.
The primary purpose of the fresh issue is to cater to the company’s working capital requirements and other general corporate objectives, with the net proceeds amounting to ₹60 crore.
Monarch Networth Capital Ltd and Unistone Capital Private Ltd have been appointed as the book-running lead managers (BRLM) for the Onest Limited IPO, while Link Intime India Private Ltd will act as the registrar.
The IPO allocates not less than 75% of the shares to Qualified Institutional Buyers (QIB), with a maximum of 15% for Non-Institutional Investors (NII), and up to 10% of the offer reserved for Retail Investors.
Onest Ltd specializes in both Fast Moving Consumer Goods (FMCG) and Non Fast Moving Consumer Goods sectors. The company adopts an asset-light approach, relying heavily on contract manufacturing for the majority of its FMCG products.
During the fiscal year 2023, Onest Ltd achieved a noteworthy 70.94% increase in consolidated revenue from operations, reaching ₹184.31 crore, compared to ₹107.82 crore in the previous year. This growth was primarily driven by the introduction of new SKUs to its product portfolio and expansion into new markets. Furthermore, the company’s net profit surged by an impressive 227.13%, from ₹2.44 crore in the fiscal year 2022 to ₹8.00 crore in the fiscal year 2023.
Upon successful listing, Onest Ltd shares are expected to trade on both BSE and NSE platforms.
About Onest:
Onest Limited operates primarily in the Fast Moving Consumer Goods (FMCG) sector, offering a diverse range of products including personal care items, home care essentials, and food products. Additionally, the company is involved in both private labeling and its own brand business. Notably, within just four years of its establishment, Onest Limited was honored with the prestigious ‘Two Star Export House’ recognition by the Directorate General of Foreign Trade, Ministry of Commerce and Industry, Government of India.
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