Firm aims to raise between `600 crore and `700 crore
Mumbai: VLCC Health Care Ltd, which runs beauty and wellness centres, on Wednesday submitted its draft initial share sale documents with the capital markets regulator Securities and Exchange Board of India (Sebi), to raise between ₹ 600 crore and ₹ 700 crore.
On Tuesday, Mint reported that VLCC will be filing its draft IPO papers with Sebi before September end.
According to the documents, available on the website of the investment banks managing the issue, VLCC is looking to raise ₹ 400 crore to deploy in the business. A private equity investor and promoters of the company are selling part of their stakes through the IPO for the rest, the document stated.
Everstone Group, which currently owns 15.11% in the company through its fund Indivision India Partners, plans to sell almost half its ownership in the company through the IPO. Everstone invested ₹ 60 crore in 2007 for a 15% stake.
The IPO is being managed by ICICI Securities Ltd, Citigroup Global Markets India Pvt. Ltd and Axis Capital Ltd.
VLCC was started by Vandana Luthra as a beauty and slimming services service in 1989.
As of 31 July, the firm had a presence across 301 locations in 134 cities and across 11 countries in South Asia, Southeast Asia, the Middle East and East Africa.
The firm has a portfolio of beauty and wellness services, personal care and nutritional products.
Wellness centres make up the bulk of VLCC’s revenue, contributing almost 69% in 2014-15, with the rest coming from sales of personal care products.
The company plans to use the proceeds of the IPO to set up more VLCC Wellness Centres and VLCC Institutes across the country. It also plans to set up some overseas.
Further, it will also use the funds to repay some of its existing debt, set up a manufacturing facility and invest in brand development.
In 2014-15, VLCC reported a revenue of ₹ 816.3 crore, compared to ₹ 712.9 crore the previous year. Its profit dropped to ₹ 20.5 crore in FY15, compared to ₹ 28.8 crore the previous fiscal.
VLCC is the 29th firm to file its draft IPO papers with Sebi this year. So far this year, 15 firms have raised ₹ 6,348 crore through the IPO route, according to data from Prime Database, a primary market data tracker.