VLCC Healthcare IPO will help the company to raise Rs 300 crore through a fresh issue of shares. The company has outlined several objectives for utilizing the net proceeds from the IPO. These include the establishment of VLCC Wellness Clinics in India and the GCC Region, the development of VLCC Institutes in India, refurbishment of existing VLCC Wellness Clinics, repayment or prepayment of certain borrowings, investment in brand development, and general corporate purposes.
VLCC Healthcare IPO – Important Details
Here are the important details of the VLCC Healthcare IPO in a table format:
|VLCC Healthcare IPO Date||To be announced|
|VLCC Healthcare IPO Listing Date||NA|
|VLCC Healthcare IPO Price||NA|
|VLCC Healthcare IPO Lot Size||NA|
|VLCC Healthcare IPO Total Issue Size||Rs 300 crore|
|VLCC Healthcare IPO Basis of Allotment||NA|
|VLCC Healthcare IPO Initiation of Refunds||NA|
|VLCC Healthcare IPO Credit of Shares to Demat||NA|
|VLCC Healthcare IPO Issue Type||Book Built|
|VLCC Healthcare IPO Listing At||NSE and BSE|
VLCC Healthcare IPO – Company Profile
Founded by Vandana Luthra in 1989, VLCC Healthcare began as a single beauty and slimming center in New Delhi and has grown into a major player in beauty, wellness, and weight management services. The company operates over 330 centers in 150+ cities, including in the Middle East, Africa, and Southeast Asia. Its success is rooted in its commitment to empowering women through health and beauty.
Vision, Mission, and Values
- Vision: VLCC aims to be a global authority in beauty, wellness, and weight management services, impacting lives worldwide.
- Mission: The company’s mission revolves around assisting individuals in achieving their beauty and wellness goals through professional services, cutting-edge products, and personalized care.
- Values: VLCC is rooted in its core values of excellence, innovation, and a customer-centric approach. The company is committed to delivering high-quality services and products and continuously innovates to stay ahead in the competitive market.
Key Services and Products
The extensive portfolio of VLCC services includes:
- Body treatments
- Hair care
- Spa treatments
- Weight management programs
- Nutrition counseling
Moreover, VLCC offers a range of proprietary products, covering:
- Skincare products
- Hair care products
- Nutrition supplements
The core customer base of VLCC primarily consists of women aged 25-50. However, the company also caters to a growing segment of male customers, reflecting the increasing emphasis on beauty and wellness among men.
VLCC Healthcare IPO Objective
The VLCC Healthcare IPO aims to boost the company’s capital for future growth, particularly in network expansion, both domestically and internationally. Significant investment is planned for digital and IT infrastructure enhancement for improved customer experience and operational efficiency, along with debt repayment for financial stability. Additionally, funds are earmarked for R&D to drive innovation in their wellness and beauty services.
- Expansion of Network: A substantial portion of the funds will be directed towards expanding the company’s existing network of wellness and beauty centers, both domestically and internationally. With a target of reaching even more customers, VLCC intends to set up new centers in untapped cities and enhance the infrastructure of existing ones.
- Investment in Digital Infrastructure: In an era where digitalization is the key to customer satisfaction and operational efficiency, VLCC plans to allocate funds to enhance its digital and IT infrastructure. This investment is expected to improve the customer experience, streamline operations, and support data-driven decision-making.
- Debt Repayment: Part of the funds raised will be utilized to repay or prepay certain outstanding borrowings of the company. This move is aimed at strengthening the financial health of the company and reducing the debt burden.
- Research and Development (R&D): Recognizing the importance of innovation in the wellness and beauty industry, VLCC will invest in R&D to create new and improved services and products. This will also help in maintaining a competitive edge in the market.
VLCC Healthcare IPO Risks And Challenges
VLCC Healthcare faces considerable challenges such as fierce competition in the wellness industry, dependency on skilled labor, and ensuring customer health and safety standards, which if breached, can damage brand trust. Moreover, the demand for their services is sensitive to economic conditions, with downturns or disruptions like COVID-19 potentially affecting their business adversely.
- Intense Competition: The beauty and wellness industry is highly competitive, with a large number of players, both domestic and international. The ability to sustain and grow in such an environment poses a significant challenge.
- Dependency on Skilled Labor: The quality of services rendered in the beauty and wellness industry heavily depends on the practitioners’ skills. Any scarcity of skilled labor can affect the business operations and reputation of the company.
- Customer Health and Safety Concerns: In the wellness and beauty industry, any health or safety concerns can seriously affect the reputation and customer trust in a brand. Maintaining high safety standards and ensuring customer satisfaction is crucial.
- Economic Conditions: The demand for beauty and wellness services is sensitive to economic conditions. Economic downturns or disruptions like the COVID-19 pandemic can adversely impact business.
To manage these risks, VLCC has implemented various strategies such as investing in employee training and development, maintaining strict quality and safety standards, diversifying its service offerings, and focusing on customer satisfaction.
VLCC Health Care Limited Financial Information
|Particular||MAR 2019||MAR 2020||MAR 2021|
|Revenue (in INR million)||8,613.09||7,750.23||5,652.42|
|Equity (in INR million)||747.13||709.20||760.73|
|Expenses (in INR million)||9,107.48||7,882.85||5,601.00|
|Profit and Loss After Tax (in INR million)||-527.05||-153.10||62.42|
|Diluted EPS only (₹)||-12.93||-4.09||1.62|
|NAV per Equity Share (₹)||19.44||17.55||18.84|
|Total Assets (in INR million)||8,122.08||7,513.35||6,923.15|
|Total Liabilities (in INR million)||7,374.95||6,804.15||6,162.42|
VLCC Health Care Limited – Industry & Market Potential
The healthcare industry, specifically the beauty, wellness, and weight management sector, is a rapidly growing market globally. With changing lifestyle trends and an increased focus on health and wellness, the demand for services offered by VLCC is at an all-time high.
Current Size and Growth Rate of the Healthcare Industry
The global healthcare industry is a massive market, projected to reach $10 trillion by 2025. The significant growth drivers include an aging population, the increasing prevalence of chronic diseases, and the rising costs of healthcare.
Key Trends and Drivers of the Healthcare Industry
Several key trends and driving factors are shaping the future of the healthcare industry:
- Increased focus on preventive care
- Growing utilization of technology in healthcare
- The rise of personalized medicine
- The demand for value-based care
VLCC Healthcare IPO – Type of Offer
The VLCC Healthcare IPO is a combination of both a fresh issue of shares and an offer for sale (OFS) by existing shareholders. The IPO will include a fresh issue of Rs.300 crore and an offer to sell 89.23 lakh shares.
VLCC Healthcare IPO Offer Size
- Equity Shares aggregating up to ₹ 300 crores and an Offer for Sale of up to 8,922,672 equity shares.
VLCC Healthcare IPO Allotment Structure
The proposed structure for the IPO allotment is typically divided among Retail investors, Qualified Institutional Buyers (QIBs), and Non-Institutional Investors (NIIs). The exact percentage breakdown will be specified in the final IPO prospectus, following the guidelines of the Securities and Exchange Board of India (SEBI).
However, it is generally in the range of 35% for Retail, 50% for QIBs, and 15% for NIIs. This structure can vary based on the decision of the company and the lead managers of the IPO.
Please note that these details are speculative, and the actual IPO details will be confirmed once the company releases its official prospectus.
How to apply for VLCC Healthcare IPO?
- Click the link to log in to the IPO console.
- Select the IPO you wish to apply for from the list of open issues.
- Once you have selected your preferred IPO, you can view all the details such as the issue open date, closing date, issue size, price, market lots, etc.
- Enter the UPI ID linked to your personal bank account. The application may be subject to rejection if the applicant’s identity differs from the individual linked to the bank account used for the application.
- When placing bids, only quantities that are multiples of the lot size are allowed. If you want to apply at the cut-off price, simply click the text box next to the ‘cut-off’ price. If you wish to place a bid at a different price, enter the desired price in the ‘Price’ field.
- After completing all the steps, read the declaration and click ‘Submit’.
Additional Steps to Follow:
- After submitting the request, you will receive a mandate request on your UPI application. Accept the mandate request. Sometimes, it may take a few hours to receive the request. This action will reserve the required amount for the application until the allotment date. If the quantity is allotted, the funds will be debited from your bank account, and the shares will be credited to your demat account at Alice Blue.
- Upon submitting the IPO bid request, you will receive an SMS from the exchange to confirm your application.
- To check the status of your application, you can select the applied IPO, and you will be able to see the most recent bids updated in your application.
- If you do not receive an allotment, the blocked funds will be released on the allotment date. The list of IPOs can also be viewed on the NSE website.
How to Check VLCC Healthcare IPO Allotment Status?
To verify the IPO allotment status for your PAN number: Once your allotment is confirmed, you will receive a confirmation email from the respective RTA. Simultaneously, you will also receive an email confirmation from Alice Blue if you applied for the IPO through the Alice Blue portal.
Visit the Link Intime page to determine the status of the allotted IPO.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the VLCC Healthcare IPO:
- Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the VLCC Healthcare IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
- NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
VLCC Health Care Ltd Offer Registrar
Link Intime India Private Limited is the registrar for the VLCC Healthcare IPO.
VLCC Healthcare IPO FAQs
When is the VLCC IPO coming?
VLCC Healthcare IPO is yet to be announced.
Is VLCC a profitable company?
Yes, VLCC Healthcare is a profitable company. As per the given data, it reported a profit of Rs 116.1 crores in 2021-22.
What is the size of VLCC IPO?
The total value of the VLCC Healthcare IPO is Rs 300 crore.
Who are VLCC’s competitors?
The main competitors of VLCC Healthcare are Kaya Skin & Hair Clinics Ltd, The Body Shop India Pvt Ltd, and Forest Essentials Pvt Ltd.
What is the drawback of VLCC?
Like any company, VLCC Healthcare would have its set of challenges and risks, which typically include factors such as market competition, regulatory changes, and fluctuations in demand. Investors should carefully analyze the company’s prospectus and recent financial performance to understand potential drawbacks.
What is VLCC famous for?
VLCC Healthcare is well-known for its wide range of services and products in the beauty and wellness industry. The company provides weight management and beauty treatment services, in addition to selling a range of skin-care, hair-care, and body-care products.
What is the strength of VLCC Company?
Some of the strengths of VLCC Healthcare include its strong brand recognition, extensive service offerings, wide distribution network, and robust growth in the wellness and beauty industry. The company has a substantial customer base and is renowned for its quality services and products. It also benefits from experienced management and consistent profitability.