Honasa Consumer Limited has submitted its Monitoring Agency Report for the quarter ended December 31, 2025. The report, issued by ICRA Limited, confirms the utilization of IPO proceeds aligns with the stated objects. A minor processing oversight regarding INR 34.269 crores was noted but fully rectified on February 02, 2026. All deployment timelines remain on schedule as per the offer document.
IPO Proceeds Utilization Review for Q3 FY2026
Honasa Consumer Limited has disclosed the Monitoring Agency Report covering the utilization of funds raised through its Initial Public Offer (IPO) for the quarter ending December 31, 2025. The total gross proceeds raised amounted to INR 1,701.44 Crore, with net proceeds (excluding issue expenses) totaling INR 350.492 Crore, based on the initial public offering period spanning October 31, 2023, to November 02, 2023.
Deployment Status and Oversight
As of the reporting date, the total utilized amount stood at INR 284.361 Crore out of the net proceeds allocated to specific objects. The utilization progress across key areas is detailed below:
- Advertisement Expenses: Total utilization reached INR 146.989 Crore against a planned INR 182.000 Crore.
- Capital Expenditure (New EBOs): Utilization totaled INR 8.503 Crore against INR 20.6000 Crore planned.
- Investment in Subsidiary (BBlunt Salons): Utilization stood at INR 6.977 Crore against INR 26.000 Crore planned.
- General Corporate Purposes (GCP) and Unidentified Inorganic Acquisition: The full allocated amount of INR 121.892 Crore has been utilized.
Deviation Management
The report notes that as of December 31, 2025, a deviation occurred within the sub-objects of the GCP category. Utilization for General Corporate Purposes was reported at 35%, exceeding the 25% specified. Management confirmed that this was due to an administrative oversight where INR 34.269 crores meant for vendor payments were inadvertently processed through the monitoring account instead of the internal operating account during Q2 and Q3 of FY 2026. The company subsequently fully replenished this amount on February 02, 2026, from internal accruals, resulting in no deviation as of the current reporting date.
Unutilized Funds Deployment
The remaining unutilized proceeds, totaling INR 66.132 Crore, have been deployed primarily in fixed-income instruments to maximize returns while maintaining liquidity. The total amount invested in Fixed Deposits across various banks (HDFC Bank, Unity Small Finance Bank, Yes Bank) reached INR 66.789 Crore. The weighted average earning rate on these investments was approximately 6.956%, leading to a market value of INR 73.745 Crore as of the quarter end.
Implementation Timeline
Regarding the scheduled implementation of the core objects, the Monitoring Agency confirmed that all activities, including advertising campaigns (FY24 – FY27) and capital expenditure for new EBOs (FY25 – FY27), are proceeding On Schedule, with no material delay observed.
Source: BSE
