 "VLCC gets Sebi nod for Rs 400-crore issue")
The Securities and Exchange Board of India (Sebi) has given clearance to beauty and wellness firm VLCC Health Care to raise at least Rs 400 crore through IPO (initial public offer) to fund its expansion in domestic as well as international markets. The firm, which had filed draft red herring prospectus (DRHP) with Sebi on September 23, seeking permission for an IPO, obtained clearance from Sebi on December 29. As per the draft papers, IPO comprises fresh issue of shares worth Rs 400 crore and an offer for sale of up to 3.77 million equity shares by the existing shareholders, Indivision India Partners and Leon International.
The company plans to sell up to 1.8 million equity shares for Rs 100 crore through a pre-IPO placement of its shares to the institutional investors.
The proceeds of the issue will be utilised for setting up VLCC Wellness Centres in India and abroad. Besides, the firm plans to establish VLCC Institutes in the country.
In addition, funds will also be used for payment of loans, brand development and general corporate purpose, among others.
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.
ICICI Securities, Citigroup Global Markets India and Axis Capital are the merchant bankers for the proposed IPO. The shares are proposed to be listed on BSE and NSE.
