Medplus Health IPO (Initial Public Offering) opened up today in the primary market and will end three days after on Wednesday, December 13 2021. Medplus Health, India’s second-biggest online pharmacy after NedMeds, is eying to raise Rs 1,398.29 crore through the issue.
Medplus, an omnichannel platform launched in the year 2006, has priced its shares between Rs 780 to Rs 796 a piece. MedPlus Health IPO will consist of freshly released shares worth Rs 600 crore and existing shares worth Rs 798.29 crore offloaded by the current shareholders of the online pharma company.
MedPlus Health IPO Lot Size
One lot of MedPlus Health IPO consists of 18 shares. Interested investors are required to purchase a minimum of one lot. Given that, the minimum amount to be invested in the MedPlus shares is Rs 14,328.
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MedPlus Health IPO Reserved Quota
HedPlus Health IPO will see a reservation quota for its employees, retail buyers, and Qualified Institutional Buyers. MedPlus will offer shares worth Rs 5 crore to its employees at a discount of Rs 78 per share on the final issue price. On the other hand, 50 per cent of the issued shares will be reserved for the qualified institutional buyers, 35 per cent will be kept for retail buyers, and the remaining 15 per cent shares will be allotted to the HNI investors.
MedPlus Health IPO Schedule
The final allotment of the MedPlus shares will be conducted by December 20. Shares of the pharma company will get deposited into the Demat accounts of confirmed shareholders by December 22. Later, MedPlus will list on the Bombay Stock Exchange and National Stock Exchange on December 23.
About MedPlus Health Services
Located in Hyderabad, MedPlus Health Services was founded by Madhukar Gangadi in 2006. Running 48 pharmacies in Hyderabad to expand its business to 2000 pharma stores spread across seven states, the pharma company has shown surging growth since its inception.
Medplus was the only retailer in 2015 to offer its services through omnichannel, which means the pharma company provided its services both online through its website, mobiles apps and offline through its outlets.
MedPlus deals in a vast range of products comprising wellness and skincare products, pharmaceutical products, and Fast Moving Consumer Goods.
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MedPlus Health IPO Reviews
The MedPLus IPO has awarded a subscribe rating from brokerage company Prabhudas Lilladher, which predicts that Medplus will scale up in terms of growth and profitability due to a fast pace of store growth; the advantages of economies of scale, and a quicker break-even point.
“We anticipate Medplus will trade at a higher multiple due to the fact that it is a pure-play omnichannel enterprise with a scarcity premium and robust growth rates,” the Prabhudas Liladher report suggested.
As per ICIC Securities’ report that shed light on the risks involved in the business, “Medplus’ operations are exposed to high working capital requirements, and any changes in product mix can exert a negative impact on margins.”
While issuing a “subscribe” rating to the MedPlus Health IPO, it also highlighted that Medplus, with its retail clustering presence, is ideally suited to benefit on an omnichannel platform with a hyperlocal service platform and is offered at a competitive rate, among other things.
MedPlus Health Services posted a profit of Rs 63.11 crore for fiscal year 21 compared to a loss of Rs 1.79 crore in fiscal year 20. Revenue grew to Rs 3,069.26 crore during the period, up from Rs 2,870.6 crore before.
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The pharma company recorded total sales of Rs 1,890.9 crore for the quarter that ended on September 30, 2021, and a net profit of Rs 66.36 crore for the same period.
HDFC Trustee, Aditya Birla Sun Life, SBI Mutual Fund, Nippon Life, Kotak Mutual Fund, Motilal Oswal Mutual Fund, and HDFC Life Insurance, among others domestic investors, made investments in the company. Other domestic investors include ICICI Prudential Life Insurance, SBI Life Insurance, and Edelweiss.
