Everstone-backed VLCC Health Care files for India IPO

According to a regulatory filing, VLCC will sell new shares worth up to INR4 billion ($60.5 million). A total of up to 3.76 million shares will also be sold by Everstone and the promoter group, including 2.55 million by the private equity firm. It currently holds a 15.11% stake in the business, while the promoter group controls 68.72%.

VLCC was founded in 1989 by Vandana Luthra as an India-based beauty and slimming service. As of July 2015, it had 301 locations in 134 cities across 11 countries in South Asia, Southeast Asia, the Middle East and East Africa. The company provides a range of beauty and wellness services, personal care and nutritional products.

The Indian beauty and wellness industry is expected to see compound annual growth of 18.6% over the next few years to reach INR803.7 billion in value by the end of 2017. There is a strong opportunity for consolidation, given that 70% of the industry comprises small-scale payers with limited training and technical knowledge.

Everstone invested INR500 million in VLCC in 2007 via its debut fund, Indivision India Partners, which was subsequently renamed Everstone Capital Partners I. The compulsorily fully convertible debentures were converted into equity in 2011.

CLSA Capital Partners committed $10 million in venture funding to VLCC in 2004. The company bought back the 13.65% holding in 2011.

VLCC posted revenue of INR8.16 billion for the 12 months ended March 2015, up from INR7.13 billion the previous year. Net profit fell to INR205.3 million from INR288.7 million over the same period.

ICICI Securities, Citi and Axis Capital are lead managers for the offering.

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• Topics
• Exits
• South Asia
• Consumer
• Consumer
• India
• Exit
• Everstone Capital
• IPO