MUMBAI: Indian shares fell more than 1 percent on Wednesday, with the metal index plunging over 4 percent, while global investors remained concerned over monetary tightening policy and recession fears.
The NSE Nifty 50 index fell 1.09 percent to 15,468.5, as of 0443 GMT, while the S&P BSE Sensex dropped 0.9 percent to 52,026.81. Both indexes had clocked their best session in three weeks on Tuesday.
Skincare startup eyes $3bn valuation in IPO
Sequoia Capital-backed Indian skincare startup Mamaearth is in talks to raise at least $300 million in a planned initial public offering next year and is seeking a valuation of around $3 billion, three people with direct knowledge of the company’s plans told Reuters.
Founded in 2016, Mamaearth has become popular in India with its range of “toxin-free” products such as face washes, shampoos and hair oils. It competes with Unilever’s India unit, Hindustan Unilever, and Procter & Gamble Co. in the booming personal care industry.
The company was last valued at $1.2 billion in January this year when it raised fresh funds from investors including Sequoia and Belgium’s Sofina.
Mamaearth is targeting a valuation of around $3 billion — 10-12 times forward revenue, a person briefed on the discussions said. It plans to file draft regulatory papers by the end of this year, said sources, who declined to be named as the plan is private.
Two of those sources said Mamaearth is in early-stage discussions to raise at least $300 million in its IPO, with a third source pegging the number at $350 million.
IKEA India to source more products locally
IKEA India plans to source more products locally to combat rising inflation, as the Swedish furniture group looks to sell more to the country’s burgeoning middle class with the launch of its latest store on Wednesday.
“We need to work on local sourcing which will help us to lower prices even more. We are working with our own costs to keep them down as much as possible, so that is how we navigate with affordability,” Susanne Pulverer, chief executive officer and chief sustainability officer at IKEA India, told Reuters on Tuesday.
IKEA sources about 25 percent to 27 percent of its products locally, with a goal to increase that to at least half in the long term.
As prices soar, the average Indian is becoming more conscious of spending on non-essential items.
India’s retail inflation touched an eight-year high in April, easing marginally last month.
(With input from Reuters)