MedPlus Health Services Files DRHP to Float an IPO Worth Rs. 1639 Crores

Pharmacy retail outlet MedPlus has filed DRHP with market regulator SEBI to launch an IPO of Rs. 1639 crores. According to the draft red herring prospectus filed by the company, this public issue will comprise fresh issue equity shares of Rs. 600 crores and an offer for sale of up to Rs. 1038.71 crores. Company promoters and current stakeholders will be the participants of this OFS.

The OFS will comprise of –

1. Equity shares of up to Rs. 500 crores by PI Opportunities Fund – I
2. Equity shares of up to Rs. 450 crores by Lone Furrow Investments
3. Equity shares of up to Rs. 88.71 lakh from various stakeholders, consisting of individuals and institutional investors

Additionally, this public issue will comprise a reservation for employees.

The objective of this initial public offering is to fund the working capital requirements of MedPlus’s subsidiary Optival. Also, MedPlus plans to meet the general corporate purpose with proceedings from this IPO.

Nomura Financial Advisory and Securities (India), Credit Suisse, Edelweiss Financial Services, and Axis Capital have been appointed as lead managers for this IPO.

Who is MedPlus?

Founded in 2006 by Gangadi Madhukar Reddy, MedPlus offers a wide range of pharmaceutical and wellness products. Their portfolio includes medicines, vitamins, medical equipment, test kits, along with FMCG products like soaps, sanitisers, toiletries, soaps, baby care products, and much more.

The Hyderabad-based pharmacy retailing chain is the first in India to offer an omnichannel sales network besides scaling its retail business. The company primarily focuses on its retail business and plans to reach even the tier-2 and tier-3 cities.

After its initial launch, MedPlus had about 48 stores in Hyderabad and scaled up to more than 2000 stores across India. As of March 2021, India’s second-largest pharmacy retailer has a presence in Tamil Nadu, Andhra Pradesh, Odisha, Karnataka, West Bengal, and Maharashtra.

Can MedPlus Be a Profitable Investment Option?

The Indian healthcare sector holds potential, with the market predicted to reach $372 billion by 2022. It is also likely to contribute 3% to India’s GDP by 2022. Resultantly, online pharmacy and retail businesses will play a notable role in this growth.

MedPlus Health Services is a major player in this business vertical, operating on strong financials. As of March 2021, the company had total assets worth Rs. 5484.24 million. Also, it has increased its revenue from Rs. 630 million in FY2019-20 to Rs.704 million in FY2020-21.

The company has also received another round of funding of $13.7 million in February 2021.

Bottom Line

Considering the current market status of MedPlus and the potential this business segment holds, it is fair to say that subscribing to this IPO can be a good option. Nonetheless, since no further details regarding this public issue are available yet, prospective investors can learn more about the company before moving ahead with their decision.

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Frequently Asked Questions

1. What is the face value of MedPlus share price?

The face value of MedPlus Health Services’ share price is Rs. 2 per share.

2. Where will the shares of MedPlus Health Services be listed?

The shares of MedPlus Health Services will be listed on BSE and NSE.

3. What are the opening and closing dates of MedPlus Health Services IPO?

No information regarding the opening and closing date of MedPlus Health Services IPO is available yet.