Honasa Consumer falls 5% on Rs 643 crore block deal

Honasa Consumer Ltd shares fell nearly 5% on Tuesday after 1.4 crore equity shares (4.4% of outstanding equity) worth Rs 643.4 crore changed hands in a block deal at around Rs 450 apiece, a 3.4% discount to the previous close. Jefferies acted as sole bookrunner. Early media reports had indicated a smaller transaction of up to 2.73% equity worth Rs 400 crore involving Peak XV Partners, Sequoia Capital Global Growth Fund III and Redwood Trust. The actual deal was larger, and the sellers face a 45-day lock-in on any further share sales.

Honasa Consumer has gained 59.4% year-to-date, sharply outperforming the Nifty 50's 13.3% decline. Technical analyst Jigar S Patel of Anand Rathi advised partial profit booking, citing momentum exhaustion, with support at Rs 430-420 and Rs 400. Equirus Securities maintained a positive view, citing Honasa's repeatable brand-building model and forecasting 10% CAGR for Mamaearth. The identity of the buyers and sellers in Tuesday's transaction was not immediately disclosed.