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Ahead of its planned initial public offering (IPO), VLCC Health Care Ltd has raised nearly 37 crore by selling shares to a foreign entity.

The homegrown beauty and wellness company issued as many as 6,27,804 equity shares for around 37 crore to Bahamas-based Zall Holdings Ltd, according to a filing by VLCC Health Care to the Ministry of Corporate Affairs.

The allotment was approved by the company's shareholders during their meeting on September 27, as per the filing.

VLCC will utilise the funds towards working capital requirement and for expanding its business as well as that of its subsidiaries.

In August, the company filed the draft papers with markets regulator Securities and Exchange Board of India (SEBI) for raising funds through an IPO. The initial share sale will comprise 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.

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.

Funds raised through the fresh issuance of shares will be used for setting up VLCC Wellness Clinics in India as well as Gulf Cooperation Council (GCC) region, and VLCC Institutes in India.

Proceeds from the IPO would be utilised for refurbishment of certain existing VLCC Wellness Clinics in India and GCC region, brand development, investment in digital and information technology infrastructure and payment of debt.

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