VLCC files IPO papers with Sebi to raise Rs 400 crore

VLCC Health Care, the beauty and wellness firm, has filed draft papers with markets regulator Sebi to raise at least Rs 400 crore through IPO to fund expansion in domestic as well as international markets.

The IPO (initial public offer) comprises fresh issue of shares worth Rs 400 crore and an offer for sale of up to 37.67 lakh equity shares by the existing shareholders - Indivision India Partners and Leon International.

The company plans to sell up to 18 lakh equity shares for Rs 100 crore through a pre-IPO placement of its shares to institutional investors. The proceed of the issue would be utilise for setting up VLCC Wellness Centers in India and abroad.

Besides, the firm plans to establish VLCC Institutes in the country.

In addition, funds would be used for payment of loans, brand development and general corporate purpose, among others.

ICICI Securities, Citigroup Global Markets India and Axis Capital are the merchant bankers for the proposed IPO.

According to an estimate, the beauty and wellness industry in the country is expected to reach Rs 80,300 crore by the end of 2017.

Founded by Vandana Luthra in 1989, the company has operations in India, Sri Lanka, Bangladesh, Nepal, Malaysia, Singapore, the UAE, Oman, Bahrain, Qatar, Kuwait, Saudi Arabia and Kenya. VLCC has become the 29th company to file draft papers with Sebi since the beginning of the year.