Honasa Consumer block deal: Stock falls over 6% as more than 3 crore shares change hands

Shares of Honasa Consumer Limited are in focus on Thursday, September 12, amid the reports of a large block deal.

Honasa Consumer shares are likely to exchange hands in a large block deal as shareholders plan to sell up to 3.5 crore shares. According to a CNBC report, the shares being sold in the block deal represent approximately 10.8% of the company’s outstanding equity. Earlier, shareholders had planned to sell nearly 8.05% of the company's outstanding equity.

Following the block deal buzz, Honasa Consumer shares declined over 6% on market opening. At 9:35 a.m., the stock trades at ₹496 apiece, down 5.09% on the NSE.

The floor price for the block deal has been fixed at ₹480 per share, according to reports. If the deal takes place at the floor price, the total transaction will be valued at ₹1,680 crore. Earlier, the value of the deal was estimated to be ₹1,260 crore.

The selling shareholders who are likely to participate in the deal include Peak XV Partners, Sequoia Capital, Redwood Trust, Fireside Ventures, Stellaris Ventures and Sofina Ventures, according to reports.

According to BSE data, Peak XV Partners had the largest shareholding at 18.69%, followed by Sofina Ventures, which had a shareholding of 5.16% as of June 30, 2024. Other selling shareholders, such as Sequoia Capital, Fireside Ventures, and Stellaris Ventures, held a 4.35%, 4.28%, and 4.75% stake in the company, respectively.

The selling shareholders will have a lock-in period of 60 days before they can undertake the sale of any further shares of the company. The brokers for the block deal are Kotak Securities and Jefferies India.

Shares of Honasa Consumer have gained over 58% on the NSE in a year. The stock has given Year-To-Date (YTD) returns of more than 17%. In six months, the stock has climbed by nearly 35%.