Carlyle Group acquires majority stake in VLCC, a beauty and wellness chain which was headed for an IPO

• Private equity firm Carlyle Group announced the acquisition of a majority stake in VLCC.
  
• The New Delhi-based beauty and wellness solutions provider had earlier filed its draft red herring prospectus (DRHP) for an IPO twice.
  
• The Carlyle Group also announced that VLCC founder Vandana Luthra and chairman Mukesh Luthra will continue to hold a significant stake in the company.
  

Private equity firm Carlyle Group has acquired a majority stake in the New Delhi-based beauty and wellness solutions provider VLCC, which had filed its draft red herring prospectus (DRHP) for an IPO twice, with the most recent being in August 2021. VLCC was headed for an IPO in mid-2022, but it did not launch the issue and let its DRHP lapse.

While the Carlyle Group did not disclose any financial terms of the acquisition, it said that the equity for the transaction will come from funds managed and advised by entities affiliated with Carlyle Asia Partners. The private equity firm also disclosed that it has invested over $5.5 billion in India as of September, 2022.

“We plan to help VLCC accelerate growth through investments in brand building; product expansion; scaling its pan-India digital and e-commerce distribution channels; and expanding its local footprint of retail clinics,” said Amit Jain, managing director and co-head, Carlyle India Advisors.

VLCC is a beauty and fitness chain established in 1989 and based in New Delhi. Founded by Vandana Luthra, the company has 210 retail clinics with a presence in 118 cities and 11 countries across South Asia, Middle East and Africa. It also operates 100 skill development institutes in India where it provides vocational training in the beauty and wellness segments.

“We believe VLCC is well-positioned to capture a larger share of the fast-growing skincare, beauty and wellness market in the countries we operate in. We are delighted to have found in Carlyle a partner who shares our vision and plans for taking VLCC to its next level of growth,” said founder Vandana Luthra.

VLCC filed its papers for IPO twice

The beauty and wellness chain had filed its papers for an IPO twice – once in 2015, and then in 2021, according to data from market regulator Securities and Exchange Board of India (SEBI).

In 2022, the company’s chairman Mukesh Luthra said in an interview with the Economic Times that VLCC is aiming to go public in mid-2022, but that did not transpire.

At the time, VLCC had planned to raise ₹850-900 crore from the IPO, which included a fresh issue of equity shares worth ₹300 crore, while the rest would be in the form of an offer for sale from promoter Mukesh Luthra, and investors OIH Mauritius and Leon International completely exiting their holdings.

The Carlyle Group also announced that VLCC will appoint Gurveen Singh and J Suresh as independent directors. Suresh recently left Arvind Fashions.

SEE ALSO:

Overall demand scenario not changed significantly but Europe is a problem says TCS CEO

India’s credit worthiness to be stable in 2023, but upcoming elections could keep social spending elevated: Moody’s

Churn and fewer 4G subscribers to slow down telecom revenue growth in Q3