Reuters reports that Indian cosmetics business Honasa Consumer Limited, the owner of Mamaearth, has postponed its initial public offering (IPO). Weak market conditions were identified by sources as the cause of this development by Reuters.

The fast-moving consumer goods company is reportedly in a "wait and watch" mode as the situation of the world market is still up in the air, according to the source.

By the end of January, Mamaearth also intended to start marketing the IPO and start preliminary discussions with investors, but neither of those things had taken place yet, according to the sources. According to one of the sources, there was a discrepancy between the valuation the company was seeking and what investors were ready to offer during early informal checks with investors.

The Securities and Exchange Board of India (SEBI) must approve the business's IPO by the end of December in order for the company to file its final prospectus. According to the sources, it still intends to list but with a delay. If the mood changes, they suggested, it might reevaluate market conditions and begin its marketing campaign by October.

The company clarified that they are still engaging with SEBI on their DRHP and awaiting formal approval for the same.  "Post the approval as is in line with the regulations we will have 12 months to file RHP and take the company public, which we will do in consultation with our bankers.”

In December of the previous year, Honasa Consumer submitted its draft red herring prospectus. A fresh issue of equity shares with a maximum value of Rs 400 crore and an offer for sale (OFS) of up to 46,819,635 shares were both proposed by the corporation.

Other than the two promoters Varun Alagh and Ghazal Alagh, the selling stockholders in the OFS would be the actor Shilpa Shetty Kundra, Rohit Kumar Bansal, Sofina Ventures, and Kunal Bahl.