Medplus Health Services Limited IPO Details

Dates, Price band, Lot size, Risks, Review and broker recommendations etc.
Medplus IPO

Medplus IPO: Key Details

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Company Information

Medplus Health Services Limited, incorporated in 2006, is the second-largest pharmacy retailer in India, in terms of revenue from operations for the financial year 2021, and the number of stores (2000+) as of March 31, 2021, according to the Technopak Report.

They offer a wide range of products, including

(i) pharmaceutical and wellness products, including medicines, vitamins, medical devices, and test kits, and (ii) fast-moving consumer goods, such as home and personal care products, including toiletries, baby care products, soaps, and detergents, and sanitizers.

Competitive Strengths

  • India’s Second Largest Pharmacy Retailer;
  • Established Brand and Value Proposition to Customers;
  • Successful Track Record of Expansion Using a Distinct Cluster-based and Replicable Store Unit Expansion Approach;
  • High Density Store Network Enhancing Omni-channel Proposition;
  • Lean Cost Structure and Technology Driven Operations; and
  • Well Qualified, Experienced and Entrepreneurial Board and Senior Management Team.

Company Strategy

  • Strengthen Market Position by Increasing Store Penetration in Existing Clusters and Developing New Clusters
  • Further Develop Omni-channel Platform with a Hyperlocal Delivery Model
  • Increase Share of Private Labels and Enhance Stock Keeping Unit (“SKU”) Mix
  • Enhance Revenue and Increase Customer Wallet Share Through Continued Investment in Technology Infrastructure and Expansion into Adjacent Healthcare Vertical
  • Continue to Increase Operating Efficiency and Enhance Supply Chain Management to Drive Profitability

Proceeds from Medplus IPO will be used to:

  • Investment into Material Subsidiary, Optival for funding working capital requirements of Optival; and
  • General corporate purposes.

Medplus IPO: Financials

201920202021 Mar2021 June
Revenue from Ops₹2272.3 Cr₹2870.6 Cr₹3069.3 Cr₹1879.9 Cr
Prof Before Exp. Items₹22.75 Cr₹29.36 Cr₹95.10 Cr₹83.56 Cr
Profit after Tax₹11.92 Cr₹1.79 Cr₹63.11 Cr₹66.37 Cr
EPS (Basic)1.330.215.996.16
₹ in Crores, except EPS

EPS (Avg*)P/E (Floor)P/E (Cap)
Based on basic EPS3.29237.08241.95
* Weighted Average for last 3 years

Medplus IPO: Comparison with listed industry peers

As per RHP, There are no listed companies in India that engage in a business similar to that of the Company. Accordingly, it is not possible to provide an industry P/E ratio.

Medplus IPO Dashboard

Issue Details

TypeValue
Issue Size₹1,398.30 Cr
Fresh Issue ₹600.00 Cr
Offer for Sale ₹798.30 Cr
Face Value₹2/- per Equity Share
IPO Price₹780 – ₹796
Lot Size 18 shares
LotsMin 1 – Max 13

Key Dates

Date TypeDate
Bid Open13/12/2021
Bid Close15/12/2021
Allotment Finalization20/12/2021
Initiation of Refunds21/12/2021
Credit of Shares22/12/2021
Listing Date23/12/2021

Lot Size and Price

LotsSharesAmount
118₹14,328
13234₹1,86,264

Promoter Holding

HoldingPercentage
Pre-Issue43.16%
Post-Issue40.43%

Medplus IPO: Investor Quota and Shares Offered

Investor TypeQuotaShares on Offer
QIB50%
NII15%
RII (Retail)35%
Employees
Total100%

Medplus IPO: Risks

  • One of the Promoters, Lone Furrow Investments Private Limited, has pledged a portion of its shareholding with certain lenders under various loan and security agreements
  • Their insurance coverage may not be adequate to protect us against all potential losses to which they may be subject to.
  • There have been instances of negative cash flows in the last three financial years.
  • Their lenders have imposed certain restrictive conditions on us under financing arrangements.

For complete internal and external risk factors, you can refer to the RHP of the company.

Medplus IPO: Registrar and Lead Managers

Registrar of the Issue

KFintech (Formerly Karvy)

Selenium Tower B, Plot 31 & 32,
Financial District, Nanakramguda, Serilingampally
Hyderabad, Telangana India – 500 032

Phone: 1-800-309-4001
Email: [email protected]

Lead Managers of the Issue

  • Axis Capital Limited
  • Credit Suisse Securities (India) Private Limited
  • Edelweiss Financial Services Limited
  • Nomura Financial Advisory and Securities (India) Private Limited

Phone: +91 22 4325 2183
Email: [email protected]

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