Investors make a listing gain as Medplus Health Services shares list at Rs. 1040, 30.6% higher than its issue price of Rs. 796

5 August 2022
4 mins read
Investors make a listing gain as Medplus Health Services shares list at Rs. 1040, 30.6% higher than its issue price of Rs. 796

The shares of Medplus Health Services made their debut today on both the stock exchanges, BSE and NSE. On the National Stock Exchange, they listed at Rs. 1040 and started trading higher since the first trade. It gave a similar performance in early trading hours on the Bombay Stock Exchange as well after listing at Rs. 1015. The Medplus Health Services share price was floating well above the listing price in the first hour of the trading session.

The investors enjoyed a listing gain of over 30%. The shares of Medplus Health Services were allocated to the subscribers on 20th December 2021. The IPO was open for subscription from 13th of December, 2021 to 15th of December, 2021. This three-day issue was worth Rs. 1,398 crores.

Know about Medplus Health Services Ltd.

Medplus Health Services, India’s second-largest multi-channel pharmacy retailer with a total of 2600 stores across the country. The company offers a variety of medicines, vitamins, and medical devices. They also provide fast-moving consumer goods such as home and personal care products.

It is the first multi-channel pharmacy retailer in India that offers an omni-channel platform. This platform enables customers to shop for products wherever they are and place orders online.

Subscription Details

The IPO saw a healthy response from investors, with the entire issue being subscribed over 53 times. The following table summarises the status as on the last day of its subscription.

 

Investor Type Number of times subscribed
QIB 112 times
HNI 85 times
Retail 5 times
Employees 3 times
Total 53 times

 

More about Medplus Health Services IPO 

  • Medplus Health Services IPO pricewas Rs. 796 with 18 shares in one lot. For the initial offer, the band was set between the price of Rs. 780 and Rs. 796 as the type of this issue was book-built.
  • This issue included both, a fresh sale of shares and sale of existing shares by the promoters, Gangadi M. Reddy, Agilemed Investments, and Lone Furrow Investments.
  • Out of the total Rs. 1398 crores issue, the fresh shares were worth Rs. 600 crores whereas promoters sold shares worth Rs. 798 crores.

Key Financial Data

On a consolidated basis, Medplus Health Services Ltd. has posted a turnover of Rs. 2285 crores and a net profit of Rs. 11.91 crores for the year ended on March 31, 2019. Thereafter, in FY 2020, their revenue stood at Rs. 2,888 crores and net profit at Rs. 1.8 crores. In FY 2021, the revenue grew to Rs. 3,091 crores and profit was up to Rs. 63.1 crores. There was a massive growth in profits.

For the half year ended September 30, 2021, the company had reported a net profit of around Rs. 66.3 crores and a revenue of around Rs. 1891 crores. The financials of the company look strong and promising.

Further Key Takeaways

  • Based on its semi-annual financial statement for the FY 2022, the company’s IPO is priced at a multiple of 27.5 times, which is a good value proposition for its customers.
  • The IPO of Medplus Health Servicesreceived positive feedback from most analysts due to the company’s strong financials and brand value.
  • Medplus Health Services is a healthcare company that operates a network of over 2,000 stores across various states like Maharashtra, Tamil Nadu, Karnataka, West Bengal, etc. to name a few.

FAQs

Who was the lead manager and registrar in the Medplus Health Services IPO?

The lead managers for Medplus Health Services IPO were Axis Capital, Nomura Financial Advisors, Credit Suisse and Edelweiss Financial Services. And the registrar was KFintech Pvt. Ltd.

What was the grey market premium before the listing of shares?

The premium in the grey market, commonly referred to as GMP, as on the day of listing was Rs. 125. It was more than 15% of the issue price. Although, the shares were listed with a premium of more than 30% on the issue price.

What was the objective for this IPO?

Medplus raised funds through this initial public offering to meet the requirement for working capital and to serve the purpose of general corporate actions.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.