D2C unicorn Mamaearth on Thursday (December 28) informed the bourses that a senior executive of the company flouted insider trading norms.
In a filing with the BSE, Honasa Consumer, Mamaearth’s parent, said that the startup’s vice-president of sales, Shuchi Garg, traded shares of the company without prior approval from the company secretary or compliance officer.
The violations pertained to the Code of Conduct under the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015.
“…We would like to inform you that one of the Designated Person (Employee) of the Company has traded into the equity shares of the Company without obtaining preclearance of the Company Secretary and Compliance Officer of the Company,” Mamamearth said.
In the meantime, the unicorn has issued a warning letter to the erring employee and has directed her to ‘refrain’ from such actions in the future. Mamaearth also said that the matter will be placed before the company’s audit committee meeting for a ‘detailed action plan’.
As per the regulatory filing, the violations by the executive spanned two separate transactions on two different days. On December 12, Garg sold 2,000 shares of Honasa Consumer at INR 420 apiece, which translated into a total value of INR 8.4 Lakh.
On the second occasion, on December 27, she again executed the sale of 1,500 shares of the company at a share price of INR 457.16, resulting in a cumulative value of INR 6.85 Lakh. Both the deals (INR 15.2 Lakhs in total) were undertaken without express pre-clearance from the company secretary.
Mamaearth made its stock market debut last month. The company listed at a premium of 2% (INR 330) on the NSE while it made a flat debut on the BSE at INR 324. The stock has surged more than 42% on the BSE since its listing, largely on the back of its positive Q2 FY24 financial results and an improving investor sentiment for new-age tech stocks.
Last week, brokerage firm JM Financial initiated a ‘BUY’ call on Honasa Consumer citing a better outlook and strong financial performance so far.
Mamaearth shares closed 0.22% lower at INR 460.35 on the BSE on Thursday (December 28).
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