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VLCC plans IPO in 2017-18, eyes 4-5 acquisitions overseas

LiveMint logoLiveMint 15-06-2017 Soumonty Kanungo

Kolkata: Beauty and wellness firm VLCC Health Care Ltd is eyeing 4-5 acquisition targets overseas, as it seeks to expand revenue from Rs1,000 crore in the current fiscal to Rs5,000 crore in three years.

Vandana Luthra, founder and mentor, said VLCC is planning an initial public offering (IPO) in the current year, and that it may file the share sale prospectus with the Securities and Exchange Board of India (Sebi) within weeks.

The company had in 2015 planned to go public and started the process of getting listed on stock markets. It was at that time looking to raise Rs400 crore through the share sale, but abandoned the plan on the advice of investment bankers.

The share sale is expected to take place between November and February in the current financial year, Luthra said at a press conference on Wednesday. But it has not been determined yet how many shares will be sold, said another company official, who asked not to be named.

Speaking about scaling up, Luthra said VLCC was only eyeing companies with an annual revenue in excess of Rs100 crore.

Most of these companies are based in Europe. Both product manufacturers and service providers are on VLCC’s radar, she added.

The beauty and wellness market in India, which is growing at 18-20% annually, is estimated at Rs1.3 trillion. Of this, around 75% is still controlled by the unorganized sector. VLCC has a share of around 10% of the organized market, according to Luthra.

VLCC has recently acquired doorstep beauty treatment service provider VanityCube and direct selling dietary supplements producer WellScience Health. In the past, it had acquired a majority stake in Singapore-based Global Vantage Innovative Group, which sells wellness products and solutions, and Waynn International, a slimming and beauty chain in Malaysia.

VLCC, with a presence in 14 countries, runs 400 wellness centres and 75 skill development centres. It plans to add 70 wellness centres and 15 skill development centres within two years, Luthra said.

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