Honasa Consumer Limited, parent company of popular FMCG brands including Mamaearth and The Derma Co, has announced a significant increase in promoter shareholding. Mr. Varun Alagh acquired additional equity shares worth ₹50.00 crore through a block deal transaction on December 29, 2025.

Share Acquisition Details

The transaction involved the purchase of 18.52 lakh equity shares through a block deal mechanism, with each share priced at ₹270.00. The acquisition represents a substantial investment by the company's promoter.

Updated Shareholding Structure

Following this acquisition, there has been a notable change in the company's shareholding pattern. Mr. Varun Alagh's individual stake has increased to 32.45%, while the overall promoter group holding has strengthened to 35.54%.

Strong Financial Performance

Honasa Consumer demonstrated robust financial performance in the September quarter, marking a significant turnaround from the previous year. The company's operational efficiency and revenue growth reflect the strength of its brand portfolio.

The company noted that when adjusted for revenue recognition with Flipkart, the growth rate would be 22.50%, indicating strong underlying business momentum.

Market Performance and Strategic Outlook

The company's shares closed at ₹276.20 on December 29, gaining ₹7.75 or 2.89% from the previous trading session. This block deal transaction represents a significant vote of confidence from the company's promoter in the business prospects and demonstrates management's commitment to long-term growth strategy.

The acquisition was executed efficiently through the block deal mechanism, allowing for large volume transactions without impacting regular market trading. The transaction was formally communicated to both the National Stock Exchange of India Limited and BSE Limited as per regulatory requirements.

HSBC has downgraded Mamaearth parent company Honasa Consumer Limited to a 'Reduce' rating, signaling a bearish outlook on the consumer goods firm. The global investment bank has set a target price of ₹242.00 per share for the stock.

Brokerage Recommendation Details

The downgrade to 'Reduce' indicates HSBC's expectation that Honasa Consumer's stock may underperform relative to the broader market. This rating typically suggests that investors should consider reducing their exposure to the stock or avoid new positions.

Market Implications

The revised rating from HSBC represents a cautious stance on Honasa Consumer's near-term performance prospects. Reduce ratings are generally issued when brokerages identify potential headwinds or challenges that could impact a company's stock performance.

Investors in Honasa Consumer will likely monitor the stock's movement in response to this rating change, as brokerage recommendations often influence trading sentiment and institutional investment decisions in the market.