VLCC gets SEBI’s clearance to launch IPO

VLCC Health Care, one of the largest homegrown beauty and wellness companies in India, has received capital markets regulator SEBI’s go ahead to float its initial public offering, market sources said on Friday.

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 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.

Fund deployment
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 utilised 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. PTI