New Delhi, May 28 -- Mumbai-based nutraceuticals maker Hexagon Nutrition Ltd will float its initial public offering next week seeking a modest increase in its valuation from the level at which it provided an exit to healthcare-focused private equity firm Somerset Indus Capital Partners a year ago.
The company, which was incorporated in 1991 and makes products for pregnant women, infants, children and convalescent patients, is going public through an IPO that only includes an offer for sale of up to 30.8 million shares by its promoters Arun Purushottam Kelkar, Subhash Purushottam Kelkar, and Aditya Kelkar, and the promoter group member Nutan Subhash Kelkar. The company itself is not raising any fresh capital.
The company has set a price band of Rs 42-45 per share. At the upper end of the band, the selling shareholders will fetch Rs 138.87 crore and the company will command a valuation of Rs 553 crore, back-of-the-envelope calculations show. This represents a 10% mark-up over the valuation at which Somerset exited last year.
In February 2025, the healthcare-focused PE firm and its partner Mayur Desai offloaded close to a 10% stake in the company to a private entity for roughly Rs 50 crore. The secondary transaction valued Hexagon around Rs 503 crore, VCCircle estimates show.
The PE firm likely generated an internal rate of return (IRR) of less than 9% in the exit, the estimates show. That's below the minimum 20% IRR that PE firms typically chase in rupee terms at the fund level.
Hexagon initially filed for an IPO in December 2021 and received approval from the Securities and Exchange Board of India (SEBI) in March 2022. The approval is usually valid for one year but in Hexagon's case it lapsed in March 2023. In late 2023, the company postponed the idea of going public and began looking for PE investors, VCCircle reported at the time. It refiled for the IPO last year.
Hexagon operates in the wellness category, offering products in three segments: business-to-consumer (B2C) branded wellness nutrition products, premix formulations, and ready to use foods and micronutrient powder.
More than 51% of the revenue generated in the nine-month period ended December 2025 came from the premix formulations segment, followed by roughly 30% from branded nutrition products, with the remainder from ready-to-use foods and other products. A majority of its revenue is derived from exporting nutraceutical products.
For the nine-month period ended December 2025, the company posted consolidated revenue of Rs 267.6 crore and a net profit of Rs 27 crore, according to the prospectus. The EBITDA margin rose to 14.03% from 12.33% in FY25, and the profit margin increased to 9.81% from 7.36% the year before. On an annualised basis, the company is likely to record over 9% revenue growth in FY26 at Rs 324-325 crore. At that level, the company is likely to be valued at 19x its net profit, and 2-2.1x its projected revenue, according to VCCircle estimates.
Published by HT Digital Content Services with permission from VC Circle.