VLCC Health Care IPO gets Sebi nod, may float public issue by Dec-end: Report 


VLCC Health Care Ltd, one of the largest homegrown beauty and wellness companies in India, has received capital markets regulator Sebi’s go ahead to float the initial public offering, news agency PTI reported on Friday citing market sources.

The company may launch the initial public offering (IPO) by December-end, they added.

The IPO comprises fresh issuance of equity shares worth 300 crore and an offer for sale (OFS) of 89.22 lakh equity shares by promoter and existing shareholders, according to the Draft Red Herring Prospectus (DRHP).

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.

Currently, Vandana Luthra and Mukesh Luthra hold 44.35 per cent and 24.37 per cent stake in the company, respectively. Also, 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 the Gulf Cooperation Council (GCC) region, and VLCC Institutes in India.

In addition, the proceeds would be utilized for refurbishment of certain existing VLCC Wellness Clinics in India and the GCC region. Further, the funds will also be used in brand development, investment in digital and information technology infrastructure and debt payments.

VLCC Health Care, which had filed its preliminary IPO papers with Sebi in August, obtained the regulator’s go ahead on Thursday to launch the public issue, the market sources said.

The company may consider a pre-IPO placement aggregating up to 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 amongst the first multi-outlet corporate operations in the wellness and beauty industry, which was at that time mostly composed of individually operated, small scale businesses.

As of March 2021, the company has served customers across 310 locations in 143 cities and across 12 countries in South Asia, Southeast 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 are the merchant bankers to advise the company on the public issue. The equity shares of the company will be listed on BSE and NSE. 

VLCC had previously filed draft papers for an IPO in 2015 and had received clearance from the regulator to launch the public issue too. However, it had withdrawn its IPO plans.

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