VLCC Health Care Ltd, one of the largest domestic beauty and wellness companies in India, has received capital markets regulator SEBI’s nod to go ahead with an initial public offering, news agency PTI reported. PTI This information was given on Friday by quoting market sources.
He said the company is likely to offer an initial public offering (IPO) by the end of December.
IPO involves fresh issuance of equity shares 300 crore and 89.22 lakh equity shares offer for sale (OFS) by the promoter and existing shareholders, as per the draft red herring prospectus (DRHP).
The OFS includes sale of up to 18.83 lakh equity shares by promoter Mukesh Luthra, up to 18.97 lakh equity shares by OIH Mauritius Limited and 52.42 lakh equity shares by Lyon International.
At present, Vandana Luthra and Mukesh Luthra hold 44.35 per cent and 24.37 per cent stake respectively in the company. In addition, Lyon International holds 13.65 per cent stake and OIH Mauritius holds 5.04 per cent stake in the firm.
The funds raised through the fresh issue of shares will be used for setting up VLCC wellness clinics in India as well as for setting up of VLCC institutions in the Gulf Cooperation Council (GCC) region and India.
In addition, the proceeds will be used for renovation of some existing VLCC wellness clinics in India and the GCC region. In addition, the funds will also be used for brand development, investments in digital and information technology infrastructure and loan payments.
Traders said VLCC Health Care had filed its initial IPO document with Sebi in August.
The company may consider pre-IPO placements, which will take the total 100 crores. If such placement is completed, the size of the new issue will be reduced.
VLCC Health Care operates VLCC branded wellness and beauty clinics and VLCC branded institutions for skill development in beauty and nutrition. It also manufactures and sells VLCC branded personal care products.
Founded by Vandana Luthra, VLCC was one of the first multi-outlet corporate operations in the wellness and beauty industry, which at that time was mostly made up of individually operated, small scale businesses.
As of March 2021, the company has served customers in 310 locations in 143 cities and 12 countries in South Asia, Southeast Asia, the GCC region and East Africa.
The company has built an ecosystem of comprehensive services and products, which include wellness programs, weight management solutions, personal care products, nutraceutical products and skill development training.
ICICI Securities, DAM Capital Advisors, IIFL Securities are merchant bankers who advise the company on public issues. The equity shares of the company will be listed on BSE and NSE.
VLCC had earlier filed the draft papers for the IPO in 2015 and obtained approval from the regulator to launch the public issue as well. However, it withdrew its IPO plan.
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