Medplus Health Services Stock Jumps 41% in Debut

5 August 2022
4 mins read
Medplus Health Services Stock Jumps 41% in Debut

The stocks of Medplus Health Services traded way above the opening price and closed around Rs. 1120 on both the stock exchanges with a gain of around 40.70% compared to its issue price.

The gain was backed up by two main factors, viz. a three-day uptrend in the stock market and large demand received by the offer. Although, the Medplus Health Services share price today was trading lower than yesterday’s close price in the morning session.

The flagship index Nifty50 was up on Thursday, which was a third consecutive positive trading session. This pushed the buyers who missed the allotment of shares to invest in the company. Let us know more details.

About Medplus Health Services Ltd.

Medplus Health Services is a multi-channel retailer that offers a variety of health and beauty products. They have over 2600 stores across India. They are a multi-channel platform that enables customers to shop for goods wherever they are. They are the first in the pharma industry to offer this facility.

Performance on NSE

On the National Stock Exchange, the shares of Medplus Health Services opened at Rs. 1040, around 30% above its issue price. Later, the price went up to make a high of Rs. 1143.90 and closed at Rs. 1121.15. Stocks received a massive buying of about 1.8 crores throughout the first trading session. However, Medplus Health Services stock price today, the second day after listing, was trading below Rs. 1100.

Performance on BSE

Similarly, on the Bombay Stock Exchange, Medplus Health Services share price opened at Rs. 1015 and started moving up from the first hour itself. It made a high of Rs. 1143.15 and finally closed with a gain of 40.70% at Rs. 1120.85. On BSE, the volume recorded was approximately 12 lakh shares throughout the day.

Medplus Health Services IPO – Summary

Medplus Health Services stock price at issue was set at Rs. 796 stuffing 18 shares in a lot. The company has raised over Rs. 1398 crores from this offer. Promoters GM Reddy, Lone Furrow, and Agilemed Investments offloaded their holding worth Rs. 798 crores whereas the balance Rs. 600 crores are the fresh issue of stocks. This book-built issue was priced between Rs. 780 and Rs. 796.

A Glance at the Financials

Parameters FY 2019 FY 2020 FY 2021
Net Assets Rs. 4,633 mn Rs. 7,712 mn Rs. 8,269 mn
Income Rs. 22,635 mn Rs. 28,675 mn Rs. 30,753 mn
Expenses Rs. 22,528 mn Rs. 28,384 mn Rs. 29,957 mn
PAT Rs. 119 mn Rs. 18 mn Rs. 631 mn

These numbers are supported by strong execution on the business level. The company has opened 48 stores in Hyderabad since its inception in September 2021. It has also expanded its network to over 2,326 stores across various cities in India. 

FAQs

What is a book-built type of issue?

There are two types of initial public offerings. One is a fixed price issue and the other is a book-built type. In a fixed price issue, the shares to be issued by the company are offered at a fixed price decided by the company itself. Whereas, in the case of a book-built type of issue, the company provides a band of prices, and investors can quote their desired price between the range. Based on the demand at each price level, the final issue price is decided.

How are the grey market price and premium decided?

The grey market price for an IPO is determined by the supply and demand numbers. If the demand for the IPO exceeds the stated shares, the price in the grey market will be higher with a premium over the base price. And if the demand is low, then the price will trade lower at discount.

What does the omnichannel platform mean?

A multichannel approach to sales is a strategy that aims to provide a seamless shopping experience for customers wherever they are. This means that customers can shop across various channels of their choice. The difference between multichannel and omnichannel is that the multichannel approach provides services on many platforms whereas the omnichannel approach provides services across all the platforms.