VLCC HealthCare IPO gets SEBI nod: Here are the top 10 things investors should know

The year 2021 has seen a spree of Initial Public Offerings (IPO) as prominent companies such as Zomato, Nykaa, Paytm have successfully listed their shares on the exchanges. In this regard, VLCC Health Care on Friday received approval to float an IPO from the Securities and Exchanges Board of India (SEBI).

The market regulator on November 25, 2021, has issued an observation letter to the healthcare company, which is also termed as approval for initial share sale.

Here are the top 10 pointers, investors should know as per the DRHP paper of the company

1) The IPO comprises fresh issuance of equity shares worth Rs 300 crore and an offer-for-sale (OFS) of 89.22 lakh equity shares by the promoter and existing shareholders, as per draft red herring prospectus.

2) The OFS comprises the 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.

3) 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.

4) The net proceeds would be utilized for brand development, investment in digital and information technology infrastructure and payment of debt along with refurbishment of certain existing VLCC Wellness Clinics in India and GCC region.

5) It operates VLCC branded wellness and beauty clinics and branded institutes for skill development in beauty and nutrition. It also manufactures and sells VLCC branded personal care products.

6) The company served customers across 310 locations in 143 cities and across 12 countries in South Asia, South East Asia, GCC region and East Africa as of March 2021.

7) The company has created an ecosystem of comprehensive services and products, including wellness programmes, weight management solutions. 

8) VLCC was among the first multi-outlet corporate operations in the wellness and beauty industry, which was at the time mostly composed of individually operated, small scale businesses.

9) ICICI Securities, DAM Capital Advisors, IIFL Securities have been appointed as merchant bankers to advise the company on the public issue. 

10) The equity shares of the company will be listed on BSE and NSE