The omnichannel retail pharmacy chain Wellness Forever has decided to file DRHP (draft red herring prospectus) for an IPO (Initial Public Offering) by the end of September 2021. The company intends to raise Rs. 1500–1600 crores through an IPO consisting of a primary issue and an offer for sale by existing investors.
Backed by investors like Adar Poonawalla of Serum Institute of India, this will be the first pharmacy chain listed on Indian stock exchanges.
Let’s take a more detailed look at this company and its proposed IPO.
About Wellness Forever
Wellness Forever is the third-largest pharmacy chain in India with a presence in 23 cities, including Mumbai, Kolhapur, Satara and Pune in Maharashtra and also in Goa and Karnataka. Its pharmacy stores are open 24×7 and provide a self-browsing and differentiated shopping experience.
The company offers over 30,000 prescription drugs as well as various health and personal care products. It has over 200+ stores, an easy to use the app and a complete website providing medicines and medical products via online and offline means. The following is a list of some of their products and services:
- Allopathic medicines
- Surgical products
- First aid box
- Medical instruments and machines
- Nursing products
- First aid box
- Oxygen cylinders
- Rehabilitation aids
- Homoeopathic medicines
- Skincare products, nutrition products and other daily use items
Wellness Forever was founded in 2008 by Mohan Chavan, Ashraf Biran and Gulshan Bakhtiani. Over the years, it has obtained the backing of several HNIs (high net worth individuals) and family offices. In November 2020, the company received funds worth Rs. 130 crores from Adar Poonawalla, Thakral family, Amit Patni and Rajiv Dadlani.
Wellness Forever IPO Details at a Glance
Wellness Forever plans to expand to 1000 stores in more states of the country by 2023. As such, the pharmacy retail chain has filed for an IPO to get the necessary funds. Moreover, family offices and HNIs who funded the company’s growth so far intend to sell off their stakes.
Wellness has almost completed the work on the draft papers and intends to go public within this month. The IPO will be a mix of primary and secondary share sales and would raise somewhere around Rs. 1500 to 1600 crores. The shares of Wellness Forever will be listed on both the NSE and BSE.
The company has already appointed banks and other advisors for this IPO. The investment bankers include IIFL Securities, DAM Capital Advisors and Ambit Private.
Financial Status of the Company
According to analysts tracking this sector, Wellness Forever has the highest retail revenue compared to its store sizes. It sells more health and wellness products than its peers through its massive and centralised distribution centre.
The pharmacy’s revenue grew to Rs. 870.79 crores in the fiscal year 2020 compared to Rs. 683.25 crores in the previous fiscal. This is a considerable increase in revenue from Rs. 330.21 crores in FY16. The company’s profits stood at Rs. 11.25 crores from Rs. 8 crores in the previous fiscal year.
Wellness Forever’s authorised share capital in the financial year ending on 31 March 2020 is at Rs. 20 crores while its total paid-up capital amounts to Rs. 8.46 crores. The company’s operating revenue range is more than Rs. 500 crores.
Wellness Forever Medicare Private Limited has an established market position and extensive experience in the pharmacy segment. With a wide product range and strong financial risk position, this company is in a good position and will continue expanding. As such, investing in its IPO could be a solid investment plan.
However, it’s prudent to remember that equity investments always carry risks. So, ensure to do adequate research before investing in Wellness Forever’s IPO.
Frequently Asked Questions
When will the Wellness Forever IPO open?
Wellness Forever will file draft papers for this IPO sometime in September 2021.
What is the objective behind the Wellness IPO?
The company will launch the IPO for the following reasons:
- Wellness Forever will use the funds from the IPO to open hundreds of new pharmacy stores.
- The HNIs and family office investors will sell their stakes.
What are some of the key strengths of this company?
The following are some key strengths of Wellness Forever:
- It has a strong financial risk profile
- The company has an established supplier relationship
- It offers a wide variety of products
- It has an established market position.