FMCG company Onest files IPO papers, fresh issue at Rs 77 crore

FMCG company Onest has submitted a draught red herring prospectus (DRHP) to the capital market regulator Sebi in preparation for a public offering (IPO).

The public offering consists of a fresh issuance of shares valued at Rs. 77 crore and an offer for sale (OFS) of 32,500,000 shares by the promoter and investors.

Founder and promoter Pawan Kumar Gupta, who holds an 84.46 percent stake in the company, will dispose of 26.64 lakh shares via the OFS route, while Glentrade DMCC will dispose of 4.68 lakh shares via the OFS route.

In addition to general corporate purposes, the vast majority of the proceeds from the new offering, excluding the costs of the offering, will be used to fund increased working capital needs.

Glentrade DMCC of Dubai owns 7.39 percent of Onest, which provides home care and personal care products, food products, and domestic products to B2B2C and B2B clients.

With a presence in Africa, the Middle East, Latin America, the South Asian Association for Regional Cooperation, the Association of Southeast Asian Nations, and the Commonwealth of Independent States, the company exported to more than 57 countries as of March 2023, and its subsidiary, Onest EasyLife LLP, has recently entered the domestic market with a vast array of products.

During FY21 through FY23, Onest's operating revenue grew at a CAGR of 69.55 percent. It also engages in private labelling and seeks to establish a foothold in developed markets such as the United States and Europe.

Profit for the fiscal year ending in March FY23 increased by 227 percent to Rs 8 crore, while EBITDA (earnings before interest, tax, depreciation, and amortisation) increased by 191 percent to Rs 10.65 crore during the same period, with margin expansion of 238 basis points YoY for the year.

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The merchant financiers for the IPO are Monarch Networth Capital and Unistone Capital.