Onest IPO: FMCG Company Files Papers with SEBI for Upcoming IPO
Onest IPO
Onest FMCG Company Set to Raise Funds through IPO: SEBI Papers Filed
The Indian IPO market has been witnessing an extraordinary surge, with numerous companies from various sectors opting to go public to raise capital for expansion and growth.
Among them, Onest, a renowned Fast-Moving Consumer Goods (FMCG) company, has taken a significant step towards its IPO journey.
The company has filed a draft paper with the Securities and Exchange Board of India (SEBI), marking the beginning of its IPO process.
With plans to issue both fresh equity shares and facilitate an Offer for Sale (OFS) by its promoters and existing investors, Onest aims to secure funds for its ambitious expansion and growth initiatives.
This article delves into the IPO details, the company’s business landscape, and its future endeavors.
IPO Details:
Onest FMCG company’s IPO is set to comprise fresh equity shares worth Rs 77 crore. This offering presents an opportunity for potential investors to participate in the company’s growth story by becoming stakeholders.
Additionally, the IPO will facilitate an Offer for Sale (OFS) route, wherein existing stakeholders, including the founder and promoter Pawan Kumar Gupta and Glentrade DMCC, will divest a portion of their holdings.
Pawan Kumar Gupta, the founder and promoter of Onest, currently holds an 84.46% stake in the company.
Through the OFS route, he will be selling 26.64 lakh shares, providing an opportunity for new investors to acquire ownership in the company.
Furthermore, Dubai-based Glentrade DMCC, which holds 7.39% stake in Onest, will also participate in the OFS by selling 4.68 lakh shares.
Onest in the FMCG Sector:
Onest operates in the Fast-Moving Consumer Goods (FMCG) sector, a highly competitive industry focused on producing and distributing essential everyday products.
The company has carved a niche for itself by offering a diverse range of products, including home care and personal care items, food products, and household goods.
By March 2023, Onest had successfully expanded its global reach, exporting its products to more than 57 countries.
The company has established a strong presence in regions such as Africa, the Middle East, Latin America, SAARC, ASEAN, and CIS countries.
With a diverse portfolio of consumer goods, Onest caters to both B2B2C (Business-to-Business-to-Consumer) and B2B customers.
Its products have garnered recognition for their quality, reliability, and affordability, making them popular choices among consumers across various geographies.
Utilization of IPO Funds:
The primary objective of the IPO is to raise capital that will enable Onest to execute its strategic expansion plans effectively.
Most of the proceeds from the fresh issue, after deducting the necessary issue expenses, will be allocated for general corporate purposes.
This allocation will provide Onest with the financial flexibility to invest in research and development, marketing initiatives, brand building, and other critical operational aspects.
Additionally, a significant portion of the funds raised through the IPO will be dedicated to meeting the company’s incremental working capital requirements.
Adequate working capital is crucial for sustaining smooth operations, ensuring timely deliveries, and fulfilling market demands. By strengthening its working capital position,
Onest aims to enhance operational efficiency and customer satisfaction.
Merchant Bankers:
To ensure the successful execution of the IPO process and adherence to regulatory guidelines, Onest has appointed Monarch Networth Capital and Unistone Capital as the merchant bankers for the public offering.
These reputed financial institutions will play pivotal roles in coordinating the IPO process, including pricing the issue, managing investor relations, and facilitating the listing process.
Company Performance and Financials:
Onest FMCG Company has demonstrated impressive performance in recent years, reflecting its strong market positioning and growth-oriented approach.
The company’s foray into the domestic market through its subsidiary, Onest EasyLife LLP, has been a strategic move to expand its reach and capitalize on the vast potential of the Indian consumer market.
During the financial years from FY21 to FY23, Onest achieved remarkable revenue growth, with revenue from operations witnessing a staggering Compound Annual Growth Rate (CAGR) of 69.55%.
This robust growth trajectory is a testament to the company’s ability to adapt to changing consumer preferences and effectively cater to diverse markets.
Furthermore, Onest has been actively engaged in private labeling, a strategic business initiative to strengthen its foothold in global markets, including the USA and European regions.
By offering private-label products, the company can establish a significant presence in these developed markets, tapping into new customer bases and broadening its revenue streams.
The fiscal year that ended in March FY23 marked a milestone for Onest, as it reported a substantial 227% increase in profit, reaching Rs 8 crore compared to the previous year.
This impressive profit growth indicates the efficiency of the company’s operations and its successful cost management strategies.
Additionally, the company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) witnessed a remarkable growth of 191% to Rs 10.65 crore during the same period.
The EBITDA margin expansion of 238 basis points year-on-year further demonstrates Onest’s commitment to achieving sustainable profitability and maximizing shareholder value.
Future Endeavors:
As Onest proceeds with its IPO, the company has set ambitious goals to drive its expansion plans and cement its position as a leading player in the FMCG sector.
Leveraging its diverse product portfolio and expanding global distribution network, Onest aims to capture a larger market share and further strengthen its brand presence.
The funds raised through the IPO will play a crucial role in financing the company’s growth initiatives.
Onest’s strategic allocation of these funds towards general corporate purposes, working capital requirements, and expansion plans will accelerate its capacity to innovate, diversify product offerings, and enter new markets.
Moreover, the company’s focus on private labeling and entry into developed markets aligns well with global trends in the FMCG industry.
With increasing consumer demand for quality products and environmentally sustainable options, Onest is well-positioned to capitalize on these opportunities and thrive in the highly competitive global market.
Conclusion:
Onest’s decision to file papers with SEBI for its IPO signifies an exciting chapter in the company’s journey of growth and expansion.
As a distinguished FMCG company with a diverse product portfolio, strong global presence, and remarkable financial performance, Onest has captured the attention of investors and industry experts alike.
The upcoming IPO presents an exceptional opportunity for investors to be part of an FMCG success story and participate in Onest’s vision for the future.
With its strategic utilization of IPO funds, a strong management team, and a commitment to innovation, Onest is poised for sustained growth and profitability in the dynamic consumer goods market.
As the IPO process unfolds, investors will keenly observe Onest’s listing on the stock exchanges, anticipating an opportunity to invest in a company with significant growth potential and a track record of delivering value to its stakeholders.
While the Indian IPO market continues to thrive, Onest stands at the forefront, ready to embark on a new phase of growth and success.
