Beauty retailing startup Nykaa is targeting to go public later this fiscal year at a valuation of $4.5 billion as the size of the initial public offering (IPO) will be kept between $500 million-$700 million.

Individuals close to the developments told the Mint that the company’s valuation is driven by a pump in their revenue and profit as the Covid-19 pandemic pushed consumers to tilt more towards online purchases.

Nykaa’s holding company FSN Ecommerce Ventures Pvt Ltd is slated to file in the draft red herring prospectus by the end of July or early June and the IPO is subsequently expected to take off in the final quarter of the ongoing fiscal.

“The public offer will be coupled with an offer for sale to provide an exit to existing investors. The price band is yet to be decided, but a 10-20% stake of the company could be offered to the public for an adequate free-float,” the source was quoted in the publication.

Kotak Mahindra Capital Co along with Morgan Stanley has been roped in to manage the e-commerce platform’s IPO.

Several major companies such as Delhivery, Zomato, Grofers, Pepperfry amongst others are eyeing public listing this year. In fact, India’s digital payments giant Paytm too is set to go public around Diwali this year in order to raise Rs 21,800 crore in what could be the country’s largest IPO ever.