VLCC Health Care Ltd. (VLCC), one of the largest homegrown wellness and beauty companies in India, intends to raise up to Rs. 300 crore of fresh capital and partly utilize these funds to set up VLCC Wellness & Beauty Clinics in India and GCC Region, VLCC Institutes in India, and for investment in digital and information technology infrastructure. The estimated size of the IPO is expected to be around Rs. 700-to-800 crore as per industry and investment banking sources.

The company will also use the amount to boost its personal care products business — in terms of investment for brand development; make repayment and/ or pre-payment, in part or full, of certain borrowings availed by it; and, general corporate purposes.

VLCC proposes to utilize an aggregate of Rs 83.24 crore from the Net Proceeds, during Fiscals 2022 and 2023, for setting-up 20 VLCC Wellness Clinics and 13 VLCC Institutes in India, four VLCC Wellness Clinics in the GCC Region, and to refurbish 25 VLCC Wellness Clinics in India and seven in the GCC Region, all of which are or will be, as applicable, Company operated. For setting up and refurbishing the VLCC Wellness Clinics in the GCC Region, the Company proposes to invest ? 44.99 crore in its subsidiary VLCC International Inc.

The Company has a principal network of Company operated outlets consisting of 103 VLCC Wellness Clinics in India, 21 VLCC Wellness Clinics in overseas markets and 52 VLCC Institutes in India, and also have 88 franchisee operated VLCC Wellness Clinics and 42 franchisee operated VLCC Institutes in India and 4 franchisee operated VLCC Wellness Clinics overseas.

VLCC is one of the largest players in the Wellness & Beauty services industry in India, with the widest footprint of company operated clinics. (Source: F&S Report). It is one of the few players in the industry to have successfully accomplished the transition to a Wellness & Beauty services and products company (Source: F&S Report). As of March 31, 2021, it served customers across 310 locations in 143 cities and across 12 countries in South Asia, South East Asia, the Gulf Cooperation Council Region (“GCC Region”) and East Africa.

The opportunity in the Indian Wellness & Beauty Industry is substantial, forecasted to grow at a CAGR of 10-12% in the next five years and is expected to reach US$ 40-42 billion by Fiscal 2025.