Personal care and wellness company VLCC Health Care on Thursday filed its draft proposal with the Securities and Exchange Board of India (Sebi) for a R400-crore-plus initial public offering, making it the 29th company to file draft papers with the market regulator this calendar year.
The issue comprises fresh shares worth R400 crore and an offer for sale of 37.7 lakh shares by existing shareholders Indivision India Partners and Leon International. The company intends to raise R100 crore in a pre-IPO placement.
Delhi-based VLCC plans to use the proceeds to fund its expansion in the domestic and international markets.
Some portion of fund-raising will also be used to pay existing corporate loans. ICICI Securities, Citigroup Global Markets India and Axis Capital are advising VLCC on the primary market deal.
Merchant bankers said companies are confident of tapping primary market and continue to queue up despite volatile conditions prevailing in the secondary markets.
In the last one month, four companies, Matrimonial.com, Teamlease Services, Alkem Labs and Dr Lal Path Labs, have filed draft prospectus with Sebi and plan to raise of total of over R1,000 crore.
So far, 15 companies have tapped the primary markets in CY15, raising close to R6,500 crore, which is the highest in the last three years.
Experts said they expect more activity on the primary market front in the months to come as they believe that
the India growth story has not derailed.