Medplus Health Services Limited IPO Details

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

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: 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