[Funding alert] VLCC Health Care raises Rs 37 Cr from foreign entity
, which is set to come out with an initial share sale, has raised nearly Rs 37 crore by selling shares to a foreign entity.
As many as 6,27,804 equity shares have been issued for around Rs 37 crore to Bahamas-based Zall Holdings Ltd, according to a filing made by the company to the corporate affairs ministry.
A leading homegrown beauty and wellness company, VLCC will utilise the funds towards working capital requirements and for expanding its business as well as that of its subsidiaries.
The allotment was approved by the company's shareholders during their meeting on September 27, as per the filing.
In August, the company filed the draft papers with market watchdog Sebi for raising funds through an Initial Public Offering (IPO).
The IPO will comprise fresh issuance of equity shares worth Rs 300 crore and an Offer For Sale (OFS) of 89.22 lakh equity shares by promoter and existing shareholders.
The OFS comprises sale of up to 18.83 lakh equity shares by promoter Mukesh Luthra, up to 18.97 lakh equity shares by OIH Mauritius Ltd, and 52.42 lakh equity shares by Leon International.
Funds raised through the fresh issuance of shares will be used for setting up VLCC Wellness Clinics in India as well as Gulf Cooperation Council (GCC) region, and VLCC Institutes in India.
In addition, the proceeds would be utilised for refurbishment of certain existing VLCC Wellness Clinics in India and GCC region, brand development, investment in digital and information technology infrastructure, and payment of debt.
Recalling the early days of starting the business, Founder Vandana Luthra had told YourStory,“When I started, there were hardly any women entrepreneurs. It was a male-dominated environment. I had to face a lot of criticism, a lot of people tried to ensure that I did not succeed and grow. The only thing I believed in was that my concept was unique, unusual, and it was being introduced in India for the first time,” she said.
(Additional information has been added to this PTI copy for context)