It does not get any more absurd that this one.As if the recent flurry of IPO’s was not enough, we have a new IPO candidate.It is none other then VLCC , the wellness firm.
VLCC is planning an IPO within the next 18 months to raise around 100 crores from the public via an IPO.The company plans to use the capital to drive expansion and make some acquisitions to further expand its footprint in the wellness space.
The company is successful and an established brand in the wellness and the personal grooming space.The finances of the company might be on the right track too.I am not expert on the markets but this just does not seem right to me.
What makes VLCC a worthy IPO candidate?
Sure, the company enjoys fat profit margins and is a leading player in a niche segment.But, then is there anything in the company that could excite a retail investor.
The financial details will come out in due time, but how does one benchmark the fundamentals for a company in the wellness sector.
The sector is a highly niche segment and caters to a relatively upper class clientele.
For me , this looks like an attempt to cash in on the ongoing IPO mad rush and raise some capital.
From a financial perspective, the balance sheet of the company might provide some rationale to justify the IPO announcement.But, otherwise fundamentally i do not see any rationale for VLCC to come out and announce their IPO plans.
What are your thoughts on this? Would you interested in investing in VLCC IPO as and when it hits the market.What would be your rationale for investing?