VLCC Next in Line to Ride the IPO Train, Details Here!

5 August 2022
4 mins read
VLCC Next in Line to Ride the IPO Train, Details Here!

VLCC Health Care Ltd. has got the green signal from SEBI (Securities and Exchange Board of India) to introduce its IPO. Market sources say that its IPO may launch at the end of December.

This issue will be in two parts, new issuance of equity shares and an offer for sale from promoters and existing stockholders. Let’s take a look at some details of the proposed IPO of VLCC Health Care Ltd.

Key Details of VLCC Health Care Ltd.’s IPO

Some of the key details of the VLCC Health Care Ltd IPO are listed below.

  • VLCC had filed preliminary papers in August 2021 but received the go-ahead only on Thursday, 26 November 2021.
  • Moreover, there may be a pre-IPO issue of around Rs. 100 crores. Following the outcome of this event, VLCC may reduce the IPO size.
  • Its equity shares will list on National Stock Exchange and Bombay Stock Exchange.
  • According to the Draft Red Herring Prospectus (DRHP), there will be a new issue of shares worth around Rs. 300 crores.
  • Moreover, there will also be an offer of sale (OFS) from existing shareholders. The OFS will consist of the sale of up to 89,22,000 equity shares.

Below is a table showing the break-up of the Offer of Sale from various promoters and shareholders.

Mukesh Luthra Equity shares of up to 18.83 lakhs
OIH Mauritius Ltd. Equity shares of up to 18.97 lakhs
Leon International Equity shares of up to 52.42 lakhs

What does VLCC propose to do with the funds raised?

Every IPO has an objective behind raising funds. VLCC Health Care Ltd. proposes to achieve the following goals with the money raised from their purported IPO.

  • Brand development
  • Creating new VLCC Institutes in India
  • Debt payments
  • Setting up of VLCC Wellness Clinics in India
  • Investment in IT and digital infrastructure
  • Refurbishment of existing VLCC Wellness Clinics in India as well as the Gulf region
  • Setting up of VLCC Wellness Clinics in the Gulf Cooperation Council area

About VLCC

VLCC offers a series of comprehensive product offerings. It is among India’s largest beauty and wellness brands. Some of the avenues in which the company is engaged are:

  • Skill development in beauty and nutrition
  • Manufacture and sale of VLCC products for personal care
  • Wellness programmes
  • Weight management programmes
  • Nutraceutical products
  • Skill development training

This Vandana Luthra founded company, is a pioneer in the Indian beauty and wellness sector. Previously, only small businesses dominated the skyline for this sector.

Presently, the company has served across 143 cities in 12 countries from around 310 outlets. They are widely active in regions like South and Southeast Asia, East Africa, and the GCC region.

Bottom Line

Ahead of its IPO, VLCC has raised Rs. 37 crores from the sale of equity shares to Zall Holdings Ltd. Moreover, OIH Mauritius and Leon International are looking to exit as stakeholders of the company.

Further, the Indian wellness industry is set to grow at a 10-12% CAGR. It is also expected to reach $40-42 billion by the financial year 2025. In the financial year ended March 2021, the company reported a profit of Rs. 6.24 crores.

Hence, for those looking to invest in this company, make an informed choice after consultation with financial advisors.

 

Frequently Asked Questions

  1. Currently, who holds a stake in VLCC Health Care Ltd.?

Ans. Below is a break-up of the stakeholders in VLCC Health Care Ltd.

Name of the Promoter/ Stakeholder Percentage of stake held
Vandana Luthra 44.35%
Mukesh Luthra 24.37%
Leon International 13.65%
OIH Mauritius 5.04%

Apart from Vandana Luthra, all the other stakeholders will dilute their stake in the company should the IPO go ahead.

  1. Is this VLCC’s first IPO?

Ans. VLCC had initially decided to go the IPO route in 2015. However, despite receiving clearance, the company did not go ahead with the plans.

  1. Who are the merchant bankers to advise on the issue?

Ans. The merchant bankers to advise on the issue are:

  • ICICI Securities
  • DAM Capital Advisors
  • IIFL Securities