Hexagon Nutrition Limited (HNL), backed by Somerset has received the Securities and Exchange Board of India’s (Sebi), approval to raise Rs 600 crore through an initial public offering (IPO).

The company had filed its draft prospectus in December 2021. The IPO consists of a fresh issue of shares worth Rs 100 crore and an offer for sale (OFS), of up to 30,113,918 equity shares, as per the company’s draft red herring prospectus (DRHP).

The offer for sale comprises up to 7,700,000 equity shares by Arun Purushottam Kelkar, up to 6,136,000 equity shares by Subhash Purushottam Kelkar, up to 1,500,000 equity shares by Anuradha Arun Kelkar, up to 2,500,000 equity shares by Nutan Subhash Kelkar, up to 12,204,250 equity shares by Somerset Indus Healthcare Fund I Limited and up to 73,668 equity shares by Mayur Sirdesai.

The proceeds from its fresh issuance worth Rs 33.5 crore will be utilised for the repayment or prepayment of borrowings, in full or part of all or certain borrowings for the company and subsidiaries; Rs 15 crore for funding incremental working capital requirements; Rs 19.17 crore for funding capital expenditure requirement for expanding existing facility; Rs 7.15 crore for investment in subsidiary and financing capital expenditure at existing facility and general corporate purposes.