Former investment banker Falguni Nayar-led Nykaa, the e-commerce company selling beauty and wellness products, has filed a preliminary document for an initial public offering (IPO).

FSN E-Commerce Ventures Ltd, which runs the Nykaa brand, plans to raise Rs 525 crore through the issue of new shares and an offer for sale of 4.31 crore shares according to the draft red herring prospectus (DRHP) of the company.

The overall IPO is estimated at Rs 3,500-4,000 crore and values Nykaa at $5-5.5 billion.

Private equity player TPG-backed Nykaa, based in Mumbai, sells cosmetics, grooming products and clothes.

Launched in 2012, Nykaa has built a diverse portfolio of beauty, personal care and fashion products, including self-branded products. Apart from TPG, financial services company Fidelity and Indian film actress Alia Bhatt and Hero Enterprises chairman Sunil Kant Munjal are some of its investors. The sellers include TPG Growth and Lighthouse Funds, and some individual shareholders. The investors are not selling out of the company and will continue to retain some stake after IPO. The promoter and promoter group will continue to hold more than 51 per cent of the company's shares.

The proceeds from the offer would be used to set up retail stores and warehouses, repay borrowings and to enhance the visibility of its brands.

The prospectus said the Nykaa mobile app has been downloaded 43.7 million times till the end of the last fiscal. There are also 73 Nykaa stores across 38 cities in the country.

In the financial year 2021, the company reported Gross Merchandise Value (GMV) of Rs 4,045.98 crore, an increase of 50.7 per cent over 2019-20.

Revenue from operations grew 38 per cent to Rs 2,440.89 crore. Restated profit for the year was Rs 61.94 crore compared with a loss of Rs 16.34 crore a year ago.

Falguni Nayar & family, ranked tenth on Kotak Wealth Hurun -Leading Wealthy Women List 2020, with a wealth of Rs 5,410 crore. Nayar-led Nykaa had turned unicorn last year.