Mamaearth: Rs 57 Crore Dubai Case - Honasa's Varun Alagh Shares Update

Amid the ongoing fall in the share price of Honasa Consumer Limited, the parent company of Mamaearth, the management has shared an update on the ongoing case in Dubai court, where a UAE court order directed the company to pay a compensation of Rs 56.6 Crore to a former distributor. In response to a question on the matter, Varun Alagh, co-founder, chairman and DEO of Honasa Consumer Limited (Mamaearth) said that the management of Honasa Consumer Limited is hopeful that the final decision would be in Mamaearth's favour. 

Alagh was speaking during the earnings call of the company following the Q2 FY 2025 results of Mamaearth. The transcript of the call was released on the bourses on Wednesday.

Mamaearth Dubai case: Lawyers confident of the construct of our case - Varun Alagh of Honasa

"The case is ongoing. We have a favourable judgment in the Indian High Court, but in the first appeal in Dubai, the judgment has not been as favourable. That said, our lawyers are very confident about the construct of our case. It's a simple parting with a distribution partner with the due notices that have been done," Alagh said.

He further added that the quantum of business was not as large as the damage claim had been ascertained to be. "Our documentation is also strong there. So, at least from our lawyers, we still continue to get strong confidence that the final decision should be in our favour. We have filed for an appeal in the high court in Dubai, while the high court appeal, which was already in our favour. And we continue to sort of discuss that as well," Alagh said.

Mamaearth share price today

The update comes at a time when Mamaearth shares have been on a downfall reportedly due to issues pertaining to distribution. From its all-time high of Rs 546.50 on September 10, the stock is currently trading at Rs 263.75 almost a 50% trim. On Monday, Mamaearth shares hit a 20 per cent upper circuit. After opening a gap-down, the stock continued to plummet further. 

---------------