Mumbai: Omni-channel beauty and consumer care product retailer hero The approval for the initial public offering was received from the Securities and Exchange Board of India (Sebi) on Thursday, said sources in the know of the development. The company may file an updated draft red herring prospectus with the market regulator Self According to banking sources, the size of the primary issue was increased from Rs 525 crore to Rs 630 crore on Thursday.

The IPO will also include an offer for sale (OFS) in which existing shareholders will sell up to 431.1 lakh shares.

NS Sanjay Nair Family Trust, a promoter, will sell 48 lakh shares and other investors who will dilute their stake include TPG, Light House India Fund, JM Financial, Yogesh Agencies, Sunil Kant Munjal, Harinderpal Singh Banga, Narottam Sekhsaria, Narottam Sekhsaria and Mala Gaonkar. . The company’s draft IPO prospectus, which it filed in August.

Founder Falguni Nair and his family will continue to hold a majority stake in the company even after the IPO, as reported by ET. Currently, Nair, along with her husband Sanjay Nair and two children, hold over 53% stake in the parent firm of Nykaa-FSN E-commerce Ventures.

The Mumbai-based company has appointed investment banks such as Kotak Mahindra Capital, BofA Securities, ICICI Securities, Citibank, Morgan Stanley and JM Financial to manage its public offering.

Nykaa is one of only a few profitable e-tailers in India. It reported a net profit of Rs 61.96 crore in FY21 as compared to a net loss of Rs 16.34 crore in FY21. Its revenue also grew by 38% to Rs 2,453 crore in FY21.

It said it would use Rs 130 crore to pay off debt and another Rs 200 crore to market its brands.