‘Neither quoted nor subscribed’: Mamaearth’s Ghazal Alagh on IPO valuation

MamaEarth co-founder Ghazal Alagh has refuted claims of the firm’s “disastrous” valuation demand ahead of its upcoming initial public offering (IPO) doing rounds on the internet.

Company promoter Alagh tweeted on Wednesday, “We have not quoted or subscribed to the valuation numbers mentioned in various posts on social media.”

In a series of Twitter posts, he tried to clear the air surrounding the company’s IPO valuation. “There is no mention of assessment as a standard practice in our DRHP. Valuation discovery is a process that will take place over time as we engage in deeper dialogue with the investor community.

According to speculations, MamaEarth is planning to issue an IPO with a value of roughly $3 billion or 24,000 crores. In FY22, the business achieved a net profit of 14 crores.

The most recent valuation of the business was $1.2 billion, when it raised $52 million from investors, including Sequoia in the US and Sofina in Belgium, in January last year, Live Mint Reported,

Netizens have gone gaga over the alleged high valuation. One user wrote, “If Mamaearth can ask for 24000 cr valuation, you can ask for 200% increment.” Many said that the valuation is too high and they will stay away from the IPO. The words ‘disastrous’ and ‘extortion’ were used to describe the estimated valuation.

According to the draft Red Herring prospectus, the IPO includes a fresh issue of equity shares worth Rs 400 crore and an offer-for-sale (OFS) component of 4,68,19,635 equity shares by promoters, investors and other selling shareholders. (DRHP).

Promoters Varun Alagh and Gazal Alagh, investors Fireside Ventures Fund, Sofina, Stellaris, Kunal Bansal and Rohit Bansal, Rishabh Harsh Mariwala of FMCG company Marico and Bollywood actor Shilpa Shetty Kundra are among those offering shares in the Offer for Sale.

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