Medplus Health Services IPO to open on December 13, here’s all you need to know!

Medplus Health Services IPO Price Band

Medplus Health Services, India’s second-largest pharmacy retailer, has set a price band of Rs 780-796 per equity share for its initial public offering on December 13.

The company intends to raise Rs 1,398.29 crore through a public offering that includes a fresh issuance of Rs 600 crore shares and an offer-for-sale of Rs 798.29 crore shares by selling shareholders.

Through an offer-for-sale, the Investor PI Opportunities Fund – I will sell shares worth Rs 623 crore and SS Pharma LLC would sell shares worth Rs 107 crore.

Medplus Health Services IPO Details

Others selling shares through OFS include Natco Pharma, Shore Pharma LLC, Time Cap Pharma Labs, K Prakurthi, Raghava Reddy Navdeep Patyal, R Venkat Reddy, Sangeeta Raju TK Kurien, Atul Gupta, Nithya Venkataramani Manoj Jaiswal, Kollengode Ramanathan Lakshminarayana, Rahul Garg and Bijou Kurien.

Employees of the company will be given a reserve of shares worth Rs 5 crore as part of the offer. Employees who qualify will receive shares at a discount of Rs 78 per share compared to the final offer price. The proceeds from the new offering will be used by the firm to meet the working capital needs of its material subsidiary Optical.

Investors can place bids for as few as 18 equity shares and as many as 18 equity shares after that. Retail investors can invest as little as Rs 14,328 for a single lot and as much as Rs 1,86,264 for 13 lots. Qualified institutional buyers will receive half of the offer, retail investors will receive 35%, and non-institutional investors would receive 15%.

In terms of revenue from operations for FY21 and the number of outlets as of March 2021, Medplus is India’s second largest pharmacy retailer. It has 2,000 outlets throughout India that provide pharmaceutical and wellness products.

Promoters Agilemed Investments, Lone Furrow Investments and Gangadi Madhukar Reddy held 43.16 percent of the company’s shares in the IPO.

With a 24.58 percent interest in the company, Lavender Rose Investment is the largest shareholder, followed by PI Opportunities Fund – I (22.07 percent), Lone Furrow Investments (15.42 percent), Agilemed Investments (14 percent), and Gangadi Madhukar Reddy (14 percent) (13.74 percent).

Medplus Health Services IPO Review

Medplus made a profit of Rs 63.11 crore in the financial year 2021, up from Rs 1.79 crore in the previous year. Revenue climbed to Rs 3,069.26 crore from Rs 2,870.6 crore during the same time.

Profit increased to Rs 66.36 crore from Rs 22.27 crore in the six months ended September 2021, while sales increased to Rs 1,879.92 crore from Rs 1,462.55 crore in the same period.

The issue’s book running lead managers are Axis Capital, Credit Suisse Securities, Edelweiss Financial Services, and Nomura Financial Advisory and Securities.

Frequently Asked Questions (FAQs)

What is the IPO of Medplus Health?

Medplus Health IPO is a main-board IPO with a face value of 2 and a total market capitalization of Rs 1,398.30 crores. The issuance will cost between Rs 780 and Rs 796 per equity share. A minimum order quantity of 13 shares is required. The initial public offering (IPO) will begin on December 13, 2021 and end on December 15, 2021. The IPO’s registrar is KFintech Private Limited. The shares will be listed on the BSE and NSE.

How many shares in the Medplus IPO are earmarked for high-net-worth individuals (HNIs) and regular investors?

Investors’ share is 50 percent for QIB, 15 percent for NII, and 35 percent for Retail.

How can I submit an application for the Medplus Health Public Offer?

Internet banking is the ideal approach to apply for the Medplus Health IPO. You can also use UPI to apply online through your stock broker. Fill out an offline IPO form and deposit it with your broker if you prefer to make paper applications.