Honasa Consumer share price plunges over 6% on block deal buzz

Honasa Consumer share price declined over 6% in early trade on Thursday amid reports of a block deal in the stock. Mamaearth parent company Honasa Consumer shares fell as much as 6.10% to ₹490.15 apiece on the BSE.

Today's fall in Honasa Consumer share price comes after the stock declined 3.5% on Wednesday.

Honasa Consumer shareholders, including several PE funds, are likely to have sold 3.5 crore shares of the company, representing 10.9% stake, in a block deal, a CNBC-TV18 report said.

The selling shareholders are Sequoia Capital, Peak XV Partners, Redwood Trust, Fireside Ventures, Stellaris Ventures and Sofina Ventures, the report said, quoting sources.

The floor price of the block deal was likely to be set at around ₹500 per share, taking the total transaction value to ₹1,763.3 crore, the report added. The floor price for the block deal is over 4% less than Wednesday's closing price of ₹522 per share.

Kotak Securities and Jefferies India are likely brokers to the Honasa Consumer block deal.

At the end of quarter ended June 2024, Peak XV Partners held 18.69% stake in Honasa Consumer, while Sequoia Capital held 4.35% stake and Fireside Ventures had 4.28% stake in the company.

Sofina Ventures owned 5.16% and Stellaris Ventures held 4.75% stake in Honasa Consumer at the end of June quarter.

Giving a buy-and-hold tag to Honasa Consumers shares, Sumeet Bagadia, Executive Director at Choice Broking, said, “The stock is looking positive on the technical chart. One can hold the stock for the near-term target of ₹530 to ₹540, maintaining a strict stop loss at ₹470. Fresh investors can also buy this stock for the above-mentioned short-term target, maintaining a stop loss of ₹470 apiece.”

At 9:25 am, Honasa Consumer shares were trading 5.18% lower at ₹494.95 apiece on the BSE.

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