For its initial public offering on December 13, MedPlus Health Services, India’s second-largest pharmacy retailer, has set a price range of Rs 780-796 per equity share.
The company plans to collect Rs 1,398.29 crore through a public offering that involves a fresh issuance of Rs 600 crore shares and a selling shareholder offer-for-sale of Rs 798.29 crore shares.
As part of the offer, the company’s employees would get a reserve of shares worth Rs 5 crore. Employees who meet the requirements will get stocks at a discounted price of Rs 78 each unit, compared to the closing offer value. The firm will use the funds from the new offering to cover the working capital needs of its material subsidiary Optical.
Tentative Schedule of MedPlus Health Services IPO
|IPO Start Date||13 December, 2021|
|IPO End Date||15 December, 2021|
|IPO Listing Date||23 December, 2021|
For a single lot, retail investors can invest as low as Rs 14,328 and as much as Rs 1,86,264 for 13 lots. Institutional buyers will get half of the offer, retail investors would get 35%, and non-institutional buyers will get 15%.
MedPlus is India’s second largest pharmacy retailer in terms of revenue from operations for FY21 and the number of shops as of March 2021. It has 2,000 locations in India that sell pharmaceutical and wellness products.
Lone Furrow Investments, Gangadi Madhukar Reddy and Agilemed Investments, the company’s promoters, held 43.16 percent of the company’s shares in the first public offering. Lavender Rose Investment is the company’s largest stakeholder, with a 24.58 percent stake, followed by PI Opportunities Fund – I (22.07 percent), Lone Furrow Investments (15.42 percent), Agilemed Investments (14%), and Gangadi Madhukar Reddy (14%). (13.74 percent).
In the financial year 2021, MedPlus achieved a profit of Rs 63.11 crore, up from Rs 1.79 crore the previous year. During the same period, revenue increased to Rs 3,069.26 crore from Rs 2,870.6 crore. In the six months ended September 2021, profit grew to Rs 66.36 crore from Rs 22.27 crore, while revenue increased to Rs 1,879.92 crore from Rs 1,462.55 crore.
Axis Capital, Credit Suisse Securities, Edelweiss Financial Services, and Nomura Financial Advisory and Securities are the issue’s book running lead managers.
Basis of the Offer
The following are some of the basic parameters that are used to compute the offer price, along with their strengths:
- India’s second-largest drugstore retailer.
- Clients have a well-established brand and a compelling value proposition.
- The performance of a Distinct Cluster-based and Replicable Retail Outlet Unit Expansion Strategy has been proven.
- A high-density supply chain complements the Omni-channel offering.
- Processes driven by technology and a lean pricing structure
- A well-qualified, knowledgeable, and inventive Board of Directors and Senior Management Team.