VLCC Health Care Limited was started in 1989 by Mrs. Vandana Luthra as a beauty and weight management care centre, and it was registered in 1996. In the Wellness & Beauty Sector, their business was one of the first multi-outlet corporate operations. VLCC Health Care IPO will hit the market in October 2021.
Table of Contents
About VLCC Health Care Limited
The aim of VLCC Health Care Limited has been to improve lives by making Wellness & Beauty accessible to males and females since its beginnings.
The VLCC brand has become associated with Wellness & Beauty in Indian homes after more than 30 years of existence.
As proof, Superbrands India named VLCC a “Superbrand” in 2017 and Superbrands GCC named it a “Superbrand” in 2016.
VLCC has also been recognised by ASSOCHAM with honours in the “Beauty, Wellness & Personal Care Products Category” in 2020.
It was also one of India’s most trusted wellness brands in the yearly country’s Most Trusted Brands Research from 2015 to 2019.
Footprints
They serve clients in 310 sites in 143 cities throughout 12 nations in South Asia, Southeast Asia, the Gulf Cooperation Council Region (“GCC Region”), and East Africa as of March 31, 2021.
They’ve built an ecosystem of services and products targeted at professionalising the sector, such as wellness programmes, weight management solutions, personal care products, nutraceutical products, and skill development training, with well-built research and development (“R&D”) assisting the three sections, where client and service delivery insights are constructively used to develop efficacious consumer goods.
Industry growth
The Indian Wellness & Beauty Industry presents a significant potential, with the industry anticipated to expand at a CAGR of 10-12 percent over the next five years, reaching US$ 40-42 billion by Fiscal 2025.
The Wellness and Beauty Industry is rapidly transitioning from an unregulated to an organised state.
From about 25-30 percent in Fiscal 2020, the regulated sector is anticipated to increase its market share to almost 30-35 percent in Fiscal 2025.
VLCC Health Care IPO
VLCC health care Limited, headquartered in Gurgaon has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 300 Crore Fresh issue & 8,922,672 Equity share on 13 August 2021.
The Offer includes 300 Crore value fresh equity shares and There is an offer for sell(OFS) of 8,922,672 value equity shares by the principal shareholders mentioned in the DRHP.
They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |||
| Total Assets | 692.32 | 751.34 | 812.21 | ||
| Total Revenue | 565.24 | 775.02 | 861.31 | ||
| Profit After Tax | 6.24 | (15.31) | (52.71) | ||
Basic and Diluted Earnings Per Share
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2021 | 1.63 | 1.62 | 3 |
| Financial Year 2020 | (4.09) | (4.09) | 2 |
| Financial Year 2019 | (12.93) | (12.93) | 1 |
| Weighted Average | (2.70) | (2.71) |
Objects of the Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives.
Basis of the offer
The following business strengths, They think, enable them to compete successfully in the industry:
- VLCC’s position as a top wellness and beauty company in India.
- Customized integrated business model with the potential to capitalise on size, scope, and breadth.
- The capacity to discover and develop a unique product portfolio.
- Affordably structured financial framework.
- Prominent promoters with good managerial skills.
VLCC Health Care IPO Peer Comparison
There are no publicly traded businesses in India that operate in a similar industry to theirs. As a result, providing an industry comparison in respect to their firm is not possible.
VLCC Health Care IPO Details
| IPO Opening Date | October 2021 |
| IPO Closing Date | October 2021 |
| Issue Type | Book Built |
| Face Value | 10 per share |
| IPO Price | 0 to 0 per equity share |
| Market Lot | – |
| Min Order Quantity | – |
| Listing At | BSE, NSE |
| Issue Size | – |
| Fresh Issue | 300 Crore |
| Offer for Sale | 8,922,672 Equity shares |
VLCC Health Care IPO Date
VLCC Health Care IPO opening date is October 2021, and the closing date is October 2021. The issue may list in October 2021.
| IPO Opening Date | October 2021 |
| IPO Closing Date | October 2021 |
| Basis of Allotment Date | October 2021 |
| Initiation of Refunds | October 2021 |
| Credit of Shares to Demat Account | October 2021 |
| IPO Listing Date | October 2021 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 75 |
Roughly
equivalent
|
| Non Institutional Investor | 15 |
Roughly
equivalent
|
| Retail | 10 | Minimum level of 1 lot, based on availability, for every shareholder. |
VLCC Health Care IPO Allotment Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of VLCC Health Care IPO.
VLCC Health Care IPO GMP
VLCC Health Care IPO Grey Market Premium is 0.
| Date | GMP (in Rs) | Subject to Sauda | Kostak (in Rs) |
| October 2021 | |||
| October 2021 | |||
| October 2021 | |||
| October 2021 | |||
| October 2021 | |||
| October 2021 | |||
| October 2021 | |||
| October 2021 | |||
| October 2021 | |||
| October 2021 | |||
| October 2021 | |||
| October 2021 |
VLCC Health Care IPO Review
VLCC Health Care IPO review will depend on the price band. Whenever it will be announced we will update you regarding review of this IPO is good or bad.
VLCC Health Care IPO Risk
- The COVID-19 outbreak has had and will continue to have an adverse effect on their organization.
- Their franchisees’, marketers’, and distributors’ strategies of business may have a substantial negative impact on their goodwill and the “VLCC” brand.
- With regard to their wellness services, they are vulnerable to consumer complaints and possibly lawsuit.
- They may be unable to efficiently manage their product inventories, resulting in inventory shortages, all of which might be detrimental to their business.
- They have previously experienced losses, and they may not be able to attain or sustain profitability in the future.
- Unfunded contingent liabilities might have a negative impact on their financial situation.
Other Threats
- Payments to former workers have been delayed by their company.
- They might not be able to manage the needs for obtaining raw materials for their products.
- The unauthorised distribution and sale of counterfeit copies of their items by third parties might have a detrimental impact on their company.
- Delays in collecting export revenues, as well as any fines imposed, may have a negative impact on their company.
- Failure to safeguard the confidentiality of their intellectual information and know-how might reduce the value of their technology considerably.
- Several legal procedures involving their company, promoters, directors, and subsidiaries are still pending. Any bad outcomes may have an impact on their company.
Growth
They believe that they have successfully expanded their brand from just a services provider to a healthcare and products firm in the ultimate Wellness & Beauty domain over the last several years.
They are now on a path to expand their enterprise-wide firm from a brick-and-mortar setup to an omni-channel existence, such as significant on-line and mobile app-based expansion in the next phase of their growth.
In Fiscal 2021, they had net income of $5,652.42 million, profit/(loss) for the year after taxes of 62.42 million, & EBITDA of 1,501.19 million.
Business Model
Our three major divisions have helped us create a strategic integrated business strategy based on three pillars:
- VLCC Wellness & Beauty Clinics (also known as “Wellness Clinics” or “VLCC Wellness Clinics”).
- VLCC-branded personal care goods (hereafter referred to as “Personal Care Products”).
- VLCC-branded institutes for beauty and nutrition skill development (“VLCC Institutes” or “Institutes”).
With the biggest footprint of firm-operated clinics in India, they are one of the leading participants in the Wellness & Beauty services market. They are one of the few firms in the sector that has successfully transitioned from a wellness and beauty services firm to a wellness and beauty services and product company.
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VLCC Wellness Clinics
VLCC offers one of the most diversified portfolios and presences in all service sectors in the Wellness & Beauty Industry in India, with one of the greatest scales and breadths of operations.
Their goal is to make Wellness & Beauty services available to a wide range of people. They have a large presence in India, with 191 Wellness Clinics in 106 locations throughout 23 states, 88 of which are franchised.
While their Wellness Clinics are mostly located in Urban areas and Tier I cities, our franchisee-operated Wellness Clinics are primarily placed in Tier II and Tier III cities, extending their reach even farther into India.
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Personal Care Products
They think that their 30 years of expertise as a successful Wellness & Beauty services provider, along with insights from their large client database, puts them in a good position to accelerate their expansion in the personal care products industry.
They’re focusing on curating a portfolio of unique and differentiated Personal Care Products that target fast-growing, underserved market areas with minimal or fragmented competition, such as Facial Kits.
They’ve built and grown a varied portfolio of natural skincare, hair-care, and body care by leveraging their exclusive client database and their insights into growing Wellness & Beauty demands generated from their Wellness Clinics.
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VLCC Institutes
The imbalance in training and the consequent scarcity of highly qualified workers is among the significant challenges in the Wellness & Beauty sector. (Courtesy of F&S Report)
Recognizing this need, they established their Institutes to provide entry-level and high level beauty and nutrition skill improvement courses.
This allows them to develop a competent workforce, not only for the Wellness & Beauty Sector, but also for their Wellness Clinics, where they employ the finest of them to deliver the high-quality service required to achieve high client satisfaction.
This, they feel, is evident in the 59.8% of in-house clients who visited their Wellness Clinics in Fiscal 2021.
VLCC health Care IPO Brokerage views
- Yes Securities : Not Updated
- Choice Brokering: Not Updated
- Axis Securities: Not Updated
- IIFL Securities: Not Updated
- Trade swift: Not Updated
- Anand Rathi : Not Updated
- ICICI Securities: Not Updated
VLCC Health Care IPO Subscription Status
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| October 2021 | 1 | |||||
| October 2021 | 2 | |||||
| October 2021 | 3 |
Promoters
- Mrs. Vandana Luthra
- Mr. Mukesh Luthra
Promoters’ Holding
| Pre Issue Share Holding | 82.38 % |
| Post Issue Share Holding |
VLCC Health Care IPO Prospectus
Contact Details
VLCC Health Care Limited
M-14 Greater Kailash-II, Commercial Complex,
New Delhi 110 048, India
Tel: +91 11 4163 1975
E-mail: [email protected]
Website: www.vlccwellness.com
Registrar
Kfin Technologies Private Limited
Selenium, Tower B, Plot No. – 31 and 32,
Financial District Nanakramguda,
Serilingampally, Hyderabad,
Rangareddi 500 032 Telangana, India
Telephone: +91 40 6716 2222
E-mail: [email protected]
Website: www.kfintech.com
Lead Manager(s)
- ICICI Securities Limited
- DAM Capital Advisors Limited
- IIFL Securities Limited
We hope we are able to answer all your questions about VLCC IPO. If you don’t have a Demat account, open it now with Zerodha best trading app.
Disclaimer
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
Note:
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FAQ
VLCC Health Care IPO Opening Date?
VLCC Health Care IPO will open in October 2021.
VLCC Health Care IPO Listing Date?
VLCC Health Care IPO will list in October 2021.
VLCC Health Care IPO GMP Today?
VLCC Health Care IPO Grey Market Premium is INR 0.
VLCC Health Care IPO Allotment Date?
VLCC Health Care IPO basis of allotment will be in October 2021.
Lot size for VLCC Health Care IPO?
Lot size for VLCC IPO is 0 to 0.
