MedPlus Health IPO to come out on 13th of December : Insight Details

In this week, many companies brought their IPOs. We have discussed about them in our previous articles. In this Article, we will discuss about MedPlus health which is coming out with their IPO, hitting the primary markets on Monday, 13 December.

MedPlus:

MedPlus was founded in 2006 by Gangadi Madhukar Reddy, who is the company‘s managing director and chief executive officer and currently it is the second-largest pharmacy retailer in India.

A wide range of products, mainly pharmaceutical and wellness products, such as medicines, vitamins, medical devices and test kits, and FMCG products like home and personal care products are offered by this Health Services company through its 2,000 stores across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal and Maharashtra.

The Hyderabad based-company is planning to mop up Rs 1,398.29 crore through its public issue that consists of fresh issuance of shares worth Rs 600 crore and an offer-for-sale of shares worth Rs 798.29 crore.

The offer includes a reservation of shares worth Rs 5 crore for the company’s employees. Eligible employees will get shares at a discount of Rs 78 apiece to the final offer price.

The proceeds of the fresh issue will be used for funding working capital requirements of the company’s subsidiary, Optival.

When:

The bidding for anchor investors will open on December 10. However, the bidding for the public issue will open on 13th December which will conclude after two days i.e. 15^th of December.

• Offer for sale: Rs 798.30 crore.
• Price band: Rs 780-796 per equity share.
• Market value at the upper end of the price band: ₹1,398.30 crore
• Face value: Rs 2 apiece.
• Lot size: 18 shares a lot and multiples up to 13 lots.
• Listing: NSE and BSE.
• Expected returns: 25%
• IPO GMP Today: Rs 300
• Listing Date: 23rd December 2021, expected.
• IPO registrar: Official registrar of the IPO is KFintech Private Limited.
• Lead managers: Axis Capital, Credit Suisse Securities (India), Edelweiss Financial Services, and Nomura Financial Advisory and Securities (India) are the book running lead managers to this IPO issue.
• Promoters: Gangadi Madhukar Reddy, Agilemed Investments and Lone Furrow Investments held 43.16 percent shareholding in the company.

Lavender Rose Investment is the largest shareholder with 24.58 percent stake in the company, followed by PI Opportunities Fund – I (22.07 percent).

The company has strong brand name and customer value proposition with highly qualified, experienced, and professional management team.

For the last three fiscals, the company has posted:

Even though the company has shown really good earnings for the last three fiscal years, the issue is priced aggressively and if it will be able to keep posting such profits going forward cannot be said for sure. Long term investors may subscribe who would like to play a bit risky.