MedPlus Health Services, the second-largest pharmacy retailer in India, listed at Rs. 1,040 on the NSE and at Rs. 1,015 on the BSE. The company debuted on the stock market on 23 December 2021 at a fair 30.65% premium.
This surge of around 40% is attributed to the strong IPO subscription figures and positive momentum in the stock market.
Want to know more about MedPlus Health’s debut performance?
Stellar Performance on the Bourses
On the NSE (National Stock Exchange), MedPlus stock rose by 40.85% and closed at Rs. 1,121.45 after striking a day’s low of Rs. 1,040 and a high of Rs. 1,143.90. On the debut day, MedPlus stock elevated around 43.6% to reach an intraday high of Rs. 1,143, which was a 27.51% rise from its issue price of Rs. 796 per share.
The share witnessed around 11.99 lakh trades on the Bombay Stock Exchange and 1.84 crores on the National Stock Exchange.
About MedPlus IPO
MedPlus’ stellar debut in the secondary markets is highly attributed to the success of its IPO. The leading pharmacy retailer’s initial public offering was subscribed 53 times by various investor segments.
The Rs. 1,398 crores public offer of MedPlus was open for subscription between 13 December 2021 and 15 December 2021. The company decided on selling its shares at a price range of Rs. 780 – Rs. 796 a share.
MedPlus IPO’s issue size consisted of an offer for sale of Rs. 798.30 crores by its current shareholders. The public offer also had a fresh share issuance of Rs. 600 crores.
Here is a tabular representation of MedPlus IPO performance on Day 3.
|Segment of Investor||Subscriptions|
Out of the total issue size, the company allocated 3,572,550 shares to the QIB category and 2,679,414 shares to NIIs. At the same time, around 6,251,965 equity shares were reserved for retail investors.
In addition, the book running managers to this public issue were:
- Edelweiss Financial Services Limited
- Nomura Financial Advisory and Securities (India) Private Limited
- Credit Suisse Securities (India) Private Limited
- Axis Capital Limited
Further, the primary objectives of this public issue were:
- Funding the working capital requirements of the company
- General corporate purposes
KFintech Private Limited is the registrar of this IPO.
A Glimpse at MedPlus Anchor Investment
Ahead of its IPO, MedPlus managed to generate Rs. 418 crores through a round of anchor investment. The company had allotted 52.51 lakhs equity shares to the anchor investors at the upper price band of Rs. 796 apiece.
Here are a few top anchor investors that participated in this anchor book:
- Nomura Funds International
- Fidelity Investments
- Blackrock Global Funds
- Abu Dhabi Investment Authority
- HDFC Capital Builder Fund
- Morgan Stanley Investment Fund
- Nippon India Focused Equity Fund
- Birla Sun Life Small Cap Fund
- Goldman Sachs India Equity
- Ashok India Equity Fund
- DSP Healthcare Fund
- HDFC Life Insurance
- ICICI Prudential Life Insurance
- SBI Life Insurance
The public issue also includes a share reservation for MedPlus’ employees.
A Quick Look at the Company
MedPlus is the 2nd largest pharmacy retailer firm in India regarding revenue and stores. The company offers pharmaceutical and wellness products, such as vitamins, medicines, test kits, medical devices, and more. It is also the first pharmaceutical company in the country to offer an omnichannel platform, where individuals can place orders through stores, mobile phones, online or through their ‘Click and Pick’ facility.
The company undertakes a cluster-based approach to reach its target audience. MedPlus’ warehouses are located in Bangalore, Hyderabad, Chennai, Kolkata, Bhubaneswar, Pune, Nagpur and Mumbai.
Here’s a rundown of MedPlus’s financials over three fiscal years:
|Total Assets (in Millions)||Total Revenue (in Millions)||Profit After Tax (in Millions)|
|March 2019||Rs. 9,587.11||Rs. 22,849.40||Rs. 119.22|
|March 2020||Rs. 13,486.96||Rs. 28,878.87||Rs. 17.94|
|March 2021||Rs. 15,656.58||Rs. 30,908.14||Rs. 631.11|
On the day of its debut on the bourses, MedPlus showed a magnificent performance. The stock’s listing at more than 30% premium is a bright side for the company, encouraging further growth opportunities.
Frequently Asked Questions
- What is the employees’ reservation of equity shares for MedPlus IPO?
The public issue of MedPlus also includes a reservation of shares amounting to Rs. 5 crores for the employees. Employees of this company will receive the equity shares at a discount of Rs. 78 a share.
- How good is MedPlus’ market presence?
As of 2021, MedPlus features a strong market presence with around 2,165 stores across major Indian cities, including Andhra Pradesh, Tamil Nadu, Odisha, West Bengal, etc.
- When was MedPlus incorporated?
MedPlus came into existence in 2006.
- Who are the company promoters?
The promoters of MedPlus are Agilemed Investments Pvt Ltd, Lone Furrow Investments Pvt Ltd and Gangadi Madhukar Reddy.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.