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Mumbai-based Onest Ltd is primarily engaged in the Fast Moving Consumer Goods (FMCG) market with a range of home care and personal care products, food products and household products catering to B2B2C and B2B customers has filed its Draft Red Herring prospectus (DRHP) with capital market regulator Sebi to raise funds through for its initial public offering (IPO).

The IPO with a face value of Rs 10 comprises of a fresh issue of Rs 77 crore and an offer for sale (OFS) of up to 3.25 million shares by Promoter and other selling shareholders.

The offer for sale comprises of up to 2.66 million equity shares by Pawan Kumar Gupta, up to 4.69 lakh equity shares by Glentrade DMCC, up to 62,250 equity shares by Ramesh Girdharilal Lulla, up to 30,000 equity shares by Rahul Porwal, up to 15,000 equity shares by Pankaj Jain, up to 7,500 equity shares by Piyush Dungarpuria, up to 1,875 equity shares by R Sambhu Kumar.

The Offer is being made through the Book Building Process, wherein not less than 75% of the Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers, not more than 15% of the Offer shall be available for allocation to Non-Institutional Investors and not more than 10% of the Offer shall be available for allocation to Retail Individual Investors.

The proceeds from the fresh issue will be utilised to the extent of Rs 60 crore towards funding working capital requirements of the company and general corporate purposes.

Onest Ltd, led by its Promoter, Pawan Kumar Gupta, is also involved in the Non-Fast Moving Consumer Goods (Non-FMCG) sector, offering a variety of industrial products to B2B customers. It is an emerging player to build a value brand in home care and personal care industry

The company's export activities cover five continents, encompassing African, Middle Eastern, Latin American, SAARC, ASEAN, and CIS countries, with its products reaching over 57 nations as of March 31, 2023. Onest Ltd has successfully sold its products in 9 states and 1 union territory through a network of 23 dealers. The company maintains 3 warehouses in India to store its inventory. Recently, Onest Ltd has expanded its presence in the domestic market by introducing a wide range of products through its subsidiary, Onest EasyLife LLP.

Onest Ltd concentrates on two primary verticals, namely Fast Moving Consumer Goods (FMCG) and Non Fast Moving Consumer Goods. The FMCG segment is further segmented into three categories: Home Care and Personal Care, Food Products, and Household and Other products. Its Home Care and Personal Care product portfolio includes skincare, hair care, aerosol and perfume, baby care, OTC, oral care, men care, home cleaning, and home fragrance items.

In the Food Products category, the company ventures into confectionery, biscuits, canned food, breakfast cereals, tea, coffee, and other beverages. Under Household and Other products, Onest Ltd offers batteries, bulbs, incense sticks, lighters, tapes, blades, and other stationary products.

Within the Non FMCG sector, the company engages in the Industrial and other segments, supplying inputs used in home care and personal care, paint, plastic, and beverage industries.

The company follows an asset-light model and predominantly employs a contract manufacturing approach for the majority of its products in the FMCG vertical. For its domestic operations, the company has successfully established a well-structured distribution network for product distribution across India. The company's products are marketed, sold, and distributed nationwide through dealers, retailers, and third-party e-commerce platforms.

It curates its brand portfolio by identifying market gaps and diverse consumer requirements across various price points. In response, the company develops brands such as Florona, Hunk, Brio, Freshia, Varino, Endiro, Ekon, and Delight to cater to these specific needs and preferences.

For the fiscal year 2023, the consolidated revenue from operations increased 70.94% to Rs 184.31 crore against Rs 107.82 crore a year ago, primarily due sale of goods pursuant to increase in new SKUs in the product portfolio and entries in new countries. Net profit increased by 227.13% from Rs 2.44 crore in fiscal 2022 to Rs 8.00 crore in fiscal 2023.

Monarch Networth Capital Limited and Unistone Capital Private Limited is the book running lead managers and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.