Last Updated on September 27, 2023 by BFSLTeam BFSLTeam
VLCC Health Care is among the leading Wellness and Beauty industry players in India. As per a KPMG report, the beauty and wellness industry of India is expected to hit 20 billion USD by the end of 2025 i.e. the sector is expected to grow at an annual growth rate of 20.6 %.
Furthermore, GOI has also taken initiatives like Pradhan Mantri Kaushal Vikas Yojana (PMKVY) to promote the beauty and wellness industry of the country. Therefore if you are looking forward to investing in a wellness and beauty stock, you can consider investing in VLCC Health Care Ltd IPO. Read along to know more insights about the same.
Table of Content
About the Company
VLCC was founded by Mrs. Vandana Luthra in 1989 as a beauty and weight management services centre. It is one of India’s first multi-outlet corporate operations in skincare, beauty and wellness.
The VLCC Group aims to make skincare, beauty and wellness accessible to Indian men and women and transform their lives. With more than 30 years of operation, the company has become a renowned name in the skincare and beauty industry in India.
The company offers a wide range of consumer services and enjoys a high level of consumer trust. Currently, the company’s operations span across 310 locations in 139 cities in 11 countries. It has an impressive staff strength of nearly 3000. India, Bangladesh, Sri Lanka, Singapore, Thailand, Nepal, the UAE, Kuwait and Kenya are some of the places it operates.
Beauty and wellness services, personal care products and skill development are the three pillars which are VLCC’s core business segments.
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Strengths
The qualitative factors which act as VLCC’s strength are as follows:
- The brand is famous all over India and enjoys a good reputation. With over 30 years of operations, VLCC enjoys widespread recognition across the country.
- It is highly capable of identifying and improving its product portfolio. Its verticals include beauty and wellness products, personal care products, wellness services and skill development.
- The financial structure is quite attractive. VLCC has diversified its revenue in both domestic and international markets, which helps to mitigate market risks.
- The company has a strong management capability and experienced promoters. Mrs. Vandana Luthra is a renowned personality with over 30 years of experience. Mr Mukesh Luthra has over 22 years of experience in the field.
- VLCC has built an integrated business model and a high capability of making use of scale, scope and breadth. This includes everything from weight management to beauty treatments and personal care products.
Additional Read: The Benefits of Investing in Stocks
Risks Involved
The risks involved are as follows:
- The business greatly depends on its brand reputation. If the company is unable to maintain or improve its brand image, it can have an adverse effect on the overall business.
- The operating procedures of our franchisees, distributors or agents can have a materially adverse effect on the overall reputation of the business.
- The wellness services and products offered by this firm are not immune to customer complaints and possible litigations.
- The insurance coverage may not be adequate. It may have a materially adverse impact on VLCC’s overall business and financial condition.
Also Read: Risk of investing in IPO
Why Should You Invest in VLCC Health Care IPO?
VLCC is a market leader in the beauty and wellness industry in India. It operates with a large chain of wellness stores and services. Considering that it’s expected to grow further in the coming days, investing in the IPO of VLCC could be a good idea.
VLCC Health Care IPO Financials:
Check the key financials of VLCC Health Care IPO:
| Particulars | For the Financial Year Ending (in Rs. Million) | ||
| March 31, 2021 | March 31, 2020 | March 31, 2019 | |
| Total Assets | 6,923.15 | 7,513.35 | 8,122.08 |
| Total Liabilities | 6,162.42 | 6,804.15 | 7,374.95 |
| Total Revenue | 5,652.42 | 7,750.23 | 8,613.09 |
| Profit/Loss After Tax | 62.42 | (153.10) | (527.05) |
| EBITDA | 1,501.19 | 1,478.86 | 1,233.00 |
How to Apply for VLCC Health Care IPO?
Follow these steps to subscribe to VLCC Health Care IPO:
Step 1: Go to the Bajaj Trading Platform and log in with your credentials.
Step 2: Navigate to the ‘Menu’ option and check the Open IPOs.
Step 3: Click on your preferred IPO on the redirected page.
Step 4: Fill up the required details and your UPI ID to apply.
Summary
VLCC is one of the key players in the Indian beauty and wellness industry along with a wide network of company-operated clinics. It has several verticals in the beauty and wellness industry like personal wellness services, care products, wellness and beauty clinics, and skill development focussing on nutrition and beauty.
The fresh issue size of the IPO is expected to be Rs. 300 crores approximately along with an offer for the sale of 89.2 lakh equity shares from the existing stakeholders of the company.
VLCC Health Care IPO FAQs
KFin Technologies Private Limited is the registrar of VLCC IPO. It was formerly known as Karvy Fintech Private Limited.
The minimum lot size is 1 lot for retail investors.
The details of VLCC Health Care IPO lot size are yet to be updated.
The details regarding VLCC Healthcare IPO’s allotment date will be updated when the company announces it.
Generally, it will take a minimum of 10 working days from the last day of the subscription for a company to get listed on a stock exchange.
ICICI Securities Limited, DAM Capital Advisors Limited and IIFL Securities Limited are the book-running lead managers of VLCC Health Care IPO.
