VLCC Health Care Ltd, one of the largest homegrown beauty and wellness companies in India, has filed preliminary papers with markets regulator Sebi to raise funds through an initial share sale. The initial public offer (IPO) comprises fresh issuance of equity shares worth Rs 300 crore and an offer-for-sale (OFS) of 89.22 lakh equity shares by promoter and existing shareholders, according to draft red herring prospectus.
The OFS comprises sale of up to 18.83 lakh equity shares by promoter Mukesh Luthra, up to 18.97 lakh equity shares by OIH Mauritius Ltd and 52.42 lakh equity shares by Leon International.
At present, Vandana Luthra and Mukesh Luthra hold 44.35 per cent and 24.37 per cent stake, respectively in the company, Leon International owns 13.65 per cent stake and OIH Mauritius has 5.04 per cent holding in the firm.
Funds raised through the fresh issuance of shares will be used for setting up VLCC Wellness Clinics in India as well as Gulf Cooperation Council (GCC) region, and VLCC Institutes in India.
In addition, proceeds would be utilized for refurbishment of certain existing VLCC Wellness Clinics in India and GCC region, brand development, investment in digital and information technology infrastructure and payment of debt.
The company may consider a pre-IPO placement aggregating up to Rs 100 crore. If such placement is completed, the fresh issue size will be reduced.
VLCC Health Care operates VLCC branded wellness and beauty clinics and VLCC branded institutes for skill development in beauty and nutrition. It also manufactures and sells VLCC branded personal care products.
Founded by Vandana Luthra, VLCC was among the first multi-outlet corporate operations in the wellness and beauty industry, which was at the time mostly composed of individually operated, small scale businesses.
As of March 2021, the company served customers across 310 locations in 143 cities and across 12 countries in South Asia, South East Asia, GCC region and East Africa.
The company has created an ecosystem of comprehensive services and products, including wellness programmes, weight management solutions, personal care products, nutraceutical products and skill development training.
ICICI Securities, DAM Capital Advisors, IIFL Securities have been appointed as merchant bankers to advise the company on the public issue. The equity shares of the company will be listed on BSE and NSE.