VLCC Health Care Ltd, a player in the slimming and beauty services space backed by private equity firm Everstone Capital, has filed draft papers with the market regulator for an initial public offering (IPO) .
The IPO is a fresh issue of shares worth Rs 300 crore and an offer for sale (OFS) of up to 8.92 million shares by promoters and shareholders.
In the OFS, Mukesh Luthra will sell up to 1.88 million shares, OIH Mauritius up to 1.90 million shares and Leon International up to 5.14 million shares.
ICICI Securities, DAM Capital Advisors and IIFL Securities are the lead managers to the issue.
Out of the proceeds, Rs 83 crore will be used to set up VLCC Wellness clinics in India and the Gulf Cooperation Council region, among other things.
"We believe that the said investment will enable us to earn increasing revenues on a consolidated basis, progressively scale our business, compete effectively, increase our visibility and expand our consumer base," the company said in its draft papers.
Repayment of debt worth Rs 66 crore will be done from proceeds; Rs 30.80 crore will be used for brand development and Rs 40 crore for digital and information technology infrastructure.
As of March end 2021, VLCC Health Care Ltd served customers across 12 countries in South Asia, South East Asia, the Gulf Cooperation Council region and East Africa.
The firm provides wellness therapies, weight management, beauty treatments and therapies for skin and hair, etc.
For 2020-21, total income stood at Rs 565 crore against Rs 775 crore a year ago. Net profit for the period stood at Rs 6.2 crore versus a loss of Rs 15.3 crore last year. Net debt for the period reduced to Rs 94.8 crore from Rs 135 crore last year.
This is not the first time the firm is attempting to go public. Back in 2015, it filed draft papers for an IPO but did not go through with it because of poor market conditions.