Honasa Consumer Private Ltd, the first unicorn of 2022 and parent company of brands such as Mamaearth, The Derma Co and BBlunt, has submitted draft listing documents to Sebi to raise funds through a combination of the new share issue and tender offer funds.

Co-founded by couple Varun and Ghazal Alagh (of Shark Tank fame) in 2016, this fast-growing D2C (direct-to-consumer) company ventures into beauty, baby care and skincare. It achieved unicorn status in January when it raised $52 million at a $1.2 billion valuation in a round led by top venture capital firm Sequoia Capital.

According to a draft red herring prospectus, the size of the new issue is up to Rs 400 crore, with an OFS tranche of up to 46,819,635 shares for external investors and individual shareholders.

Shareholders who will dilute their stake include Alaghs, Sofina Ventures SA, Evolvence, Fireside Ventures, Stellaris Venture Partners, Snapdeal founder Kunal Bahl, Bollywood actress Shilpa Shetty Kundra, Rishabh Harsh Mariwala and Rohit Kumar Bansal. Sequoia Capital does not participate in OFS.

Net proceeds from the IPO will be used for advertising expenses to increase brand awareness, establish new exclusive brand boutiques, invest in BBlunt to establish new salons, general corporate purposes and inorganic growth.

Mamaearth’s filing with the market regulator follows another filing in January by the Warburg Pincus-backed shipping line of its peers in the bustling D2C space. The audio-focused electronics brand is looking to raise around Rs 2,000 crore.

Kotak Mahindra Capital, JM Financial, Citigroup and JP Morgan are the investment banks participating in the IPO, while Cyril Amarchand Mangaldas, IndusLaw and Khaitan & Co are legal advisors.