VLCC Health Care Ltd, which is planning an initial public offering, has raised approximately Rs 37 crore via the sale of shares to a foreign corporation. According to a statement with the corporate affairs ministry, the Bahamas-based Zall Holdings Ltd. has been issued 6,27,804 equity shares worth roughly Rs 37 crore.
VLCC, a leading domestic beauty and wellness company, will use the money to meet working capital needs as well as expand its business and that of its subsidiaries. According to the statement, the allotment was approved by the company’s shareholders at their meeting on September 27.
Further Key Takeaways
The company submitted draft documents with the Securities and Exchange Board of India (SEBI) in August to raise capital through an Initial Public Offering (IPO).
The OFS includes Mukesh Luthra’s sale of up to 18.83 lakh equity shares, OIH Mauritius Ltd’s sale of up to 18.97 lakh equity shares, and Leon International’s sale of up to 52.42 lakh equity shares. The funds obtained from the new share offering would be utilised to open VLCC Wellness Clinics in India and the Gulf Cooperation Council (GCC) area, as well as VLCC Institutes.
In addition, the funds would be utilised to remodel some established VLCC Wellness Clinics in India and the Gulf Cooperation Council region, as well as for brand growth, investment in digital and information technology infrastructure, and debt repayment.
About the Company
VLCC Health Care is one of India’s leading participants in the wellness and beauty services market, having the largest network of company-owned clinics.
They serve consumers in 310 sites across 143 cities in 12 countries in South Asia, South East Asia, the Gulf Cooperation Council Region, and East Africa as of March 31, 2021.
VLCC Health Care has built an ecosystem of comprehensive services and products aimed at professionalising the industry, including wellness programmes, weight management solutions, personal care products, nutraceutical products, and skill development training, with well-built research and development supporting the three businesses, where customer and service delivery insights are proactively used to develop efficacious personal care products and enhanced technology.
Their integrated business model is unusual in that it is fueled by consumer data that is acquired on a regular basis from clients of various demographics, ethnicities, and nationalities.
Read More: VLCC IPO Open/Close Date
Frequently Asked Questions (FAQs)
Q1. What is an initial public offering (IPO)?
The process of issuing stocks of a firm to the public in a fresh share issuance is known as IPO. An initial public offering (IPO) allows a firm to raise funds from the general public. The move from a private to a public firm, which often involves a share premium for current private investors, can be an important strategy for investors to completely realise rewards from their investment. Meanwhile, public investors are allowed to participate in the offering.
Q2. How is an IPO priced?
The listing price is set based on the supply and demand for the shares on the market, with the goal of striking a balance between the two. The listing price is determined using all of the orders for the shares received, with the goal of maximising the number of trades that can be done when the stock first goes public.
Q3. Who determines the price of an initial public offering (IPO)?
Through a process known as book building, the IPO’s listing price is determined by the syndicate of investment banks performing the IPO.