Yash Birla Group company Birla Pacific Medspa will tap the capital market through a Rs 65 crore initial public offering (IPO) on June 20 to fund its expansion plans.
Birla Pacific Medspa plans to raise around Rs 65 crore by way of an IPO with a price band of Rs 10 to Rs 11. The issue will open for subscription on June 20 and will close on June 23.
The IPO comes at a time when the overall trend in the market is negative and most of the recent IPOs are trading below the issue price.
Commenting on this, Birla Pacific Medspa director P V R Murthy said, "Fluctuation in the market is a regular thing. We are confident about the issue and we are giving it at a rock-bottom price."
Birla Pacific Medspa plans to set up 55 healthcare centres under the brand name, "Evolve", across cities in the country. Presently, Evolve has five centres in Mumbai.
These healthcare centres will be positioned like one-stop stores, offering a range of scientific makeover solutions to enhance beauty.
The company is considering locations in Delhi, Bangalore, Ahmedabad, Pune, Chennai, Hyderabad, Jaipur and Goa for the centres, among other cities.
"By the end of this fiscal, we will have 35 stores. All 55 stores will come by June next year," he added.
Giving further details about the use of the IPO proceeds, Murthy said around Rs 49 crore will be utilised for establishing 55 outlets, about Rs 6 crore would be for brand building and the balance would be for meeting working capital expenses.
Prior to the IPO, the promoter holding in Birla Wellness & Healthcare Pvt Ltd stood at 64.77%.
Other major stakeholders in the company include Pacific Healthcare (India) Pte Ltd, Singapore, which holds 7.20%, Pachealth Medical Services Pvt Ltd (5.22%) and Bennett, Coleman & Company Ltd (22.81%).