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SEBI approves IPO plans of VLCC Health Care, Parag Milk, L&T Infotech

06 January, 2016

The capital markets regulator Securities and Exchange Board of India has approved the proposed initial public offerings (IPOs) of VLCC Health Care Ltd, Larsen & Toubro Infotech Ltd and dairy firm Parag Milk Foods Ltd, according to a disclosure.

While L&T Infotech and VLCC Health Care had filed their respective draft red herring prospectus in September, Parag Milk Foods filed its papers with SEBI for the IPO in October last year.

VLCC Health Care

The health and wellness product and service firm is looking to raise around Rs 400 crore through a fresh issue of shares. The IPO will also see the company’s promoters and private equity investor Everstone selling part of their holding through an offer for sale.

Founded in 1989 by Vandana Luthra, VLCC serves consumers across 301 locations in 134 cities and across 11 countries in South and Southeast Asia, the Middle East and East Africa.

As of July 31, 2015, it had 236 VLCC Wellness Centers, of which 213 are under the VLCC brand and the 23 in Malaysia are under the Bizzy Body and Facial First brands.

Everstone had invested Rs 50 crore in VLCC in 2007 and owns a 15.11 per cent stake in the firm.

It is now looking to part-exit by selling just under half of its holding. The PE firm, which just raised $730 million in its new fund, is likely to make big gains from the part-exit although the pricing of the issue is yet to be frozen.

Parag Milk Foods

This is the second dairy firm to file for an IPO after Prabhat Dairy Pvt Ltd. VCCircle was the first to report that the Pune-based company might look to list its shares even as media reports suggested that it was in talks with various strategic players including Dutch dairy cooperative Friesland-Campina to sell a majority stake.

The dairy firm is looking to raise up to Rs 325 crore through a fresh issue of shares. The IPO includes an offer for sale of up to 19.85 million shares by promoters and existing investors IDFC Alternatives and Motilal Oswal Private Equity.

IDFC Alternatives and Motilal Oswal PE hold a 19.21 per cent and 9.11 per cent stake in the company, respectively, besides convertible debentures that are to get converted into equity. Both are part-exiting.

Founded in 1992 as a milk distributor, Parag Milk has developed into a dairy-based branded consumer products company. It makes products such as cheese, ghee, fresh milk, whey protein, paneer, curd, yogurt, milk powder and dairy-based beverages.

Of the proceeds of the fresh issue, the firm plans to use Rs 150 crore for expansion and modernisation of existing manufacturing facilities at Manchar, near Pune, and at Palamaner in Andhra Pradesh.

It will also use the funds to repay a working capital loan (Rs 100 crore) and for general corporate purposes.

L&T Infotech

Larsen & Toubro Infotech is an IT services subsidiary of diversified business conglomerate Larsen & Toubro Ltd (L&T). This would mark the second L&T unit to go public after L&T Finance Holdings Ltd.

L&T has been looking to spin off its business units into separate listed firms while focusing on its core construction and engineering business.

The public issue comprises an offer for sale by L&T. The firm is selling 17.5 million shares comprising a 10.8 per cent stake in the unit.

Incorporated in 1996, L&T Infotech was ranked by IT industry body NASSCOM last year as the sixth-largest Indian IT services company by export revenue.

It claims 41 of the Fortune Global 500 companies as its clients and offers services in application development, maintenance and outsourcing, enterprise solutions, infrastructure management services, testing, digital solutions and platform-based solutions.

Earlier, as part of a business restructuring exercise, all engineering services businesses of L&T were consolidated under a separate subsidiary L&T Technology Services Ltd.

As part of this restructuring, on January 1, 2014, L&T Infotech sold and transferred the assets and liabilities of its business related to IT services and solutions to its clients in the telecommunication sector.


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SEBI approves IPO plans of VLCC Health Care, Parag Milk, L&T Infotech

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