Let’s have a detailed review of the Company and analytics of the MedPlus Health Services IPO release date, IPO offer price, subscription, MedPlus Health Services Limited IPO allotment, grey market price, and other details like the Company’s background, its financial positions, its promoters, and other related things.
| Face Value | Rs 2 |
| Price Band | Rs [●] |
| Listing At | BSE, NSE |
| Min. Order Quantity | NA |
| Listing Date | NA |
| Offer for Sale | Rs 10,387.16 Million |
| Fresh Issue | Rs 6,000 Million |
| IPO Size | Rs 16,387.16 Million |
| Tick Size | 1 |
MedPlus Health Services IPO is listed at a [●] premium
MedPlus Health Services IPO – Summary
They are the second-largest pharmacy retailer in India in terms of (i) revenue from operations for the financial year 2021 and (ii) the number of stores as of March 31, 2021, according to the Technopak Report. They offer a wide range of products, including (i) pharmaceutical and wellness products, including medicines, vitamins, medical devices, and test kits, and (ii) fast-moving consumer goods, such as home and personal care products, including toiletries, baby care products, soaps and detergents, and sanitisers.
Their Company was founded in 2006 by Gangadi Madhukar Reddy, their Managing Director and Chief Executive Officer, with the vision to set up a trusted pharmacy retail brand that offers genuine medicines and delivers better value to the customer by reducing inefficiencies in the supply chain using technology.
The Promoter of this Company is GANGADI MADHUKAR REDDY, LONE FURROW INVESTMENTS PRIVATE LIMITED AND AGILEMED INVESTMENTS PRIVATE LIMITED. The lead manager is Axis Capital Limited, Credit Suisse Securities (India) Private Limited, Edelweiss Financial Services Limited, and Nomura Financial Advisory and Securities (India) Private Limited, and the Registrar to this issue is Kevin Technologies Private Limited.
MedPlus Health Services IPO Date
The opening and the closing date of MedPlus Health Services IPO are not available yet.
MedPlus Health Services IPO Price Band
The face value of each share is Rs.2, but the price band of the IPO is Rs.[●]
MedPlus Health Services IPO Equity Size
This Initial Public Issue of X Equity Shares of Rs.2 each for cash at Rs.[●] per equity share aggregating to Rs.16,387.16 Million.
MedPlus Health Services IPO Share Offering
Fresh Issue: The Issue (excluding the Market Maker Reservation Portion) of [●] Equity Shares of Rs.2/ each.
Issue Size: X Equity Shares of Rs.2 each, aggregating to Rs.16,387.16 Million
MedPlus Health Services IPO – Company Overview
They have maintained a strong focus on scaling up their store network, having grown from operating their initial 48 stores in Hyderabad at the conception of their business to operating India’s second-largest pharmacy retail network of over 2,000 stores distributed across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal, and Maharashtra, as of March 31, 2021, according to the Technopak Report.
Stemming from their focus on growing and achieving leadership in the key cities where they operate, for the financial year 2021, their share of the organized pharmacy retail market, based on revenue from operations, in Chennai, Bangalore, Hyderabad, and Kolkata stood at approximately 30%, 29%, 30%, and 22%, respectively, according to the Technopak report.
Their number of stores has grown since the conception of their business and, as of June 30, 2021, they operated 520 stores in Karnataka, 458 stores in Tamil Nadu, 443 stores in Telangana, 274 stores in Andhra Pradesh, 201 stores in West Bengal, 186 stores in Maharashtra and 83 stores in Odisha.
They have continued to expand their store footprint in key cities where they operate and, between March 31, 2010, and June 30, 2021, their number of stores in Chennai grew over four-fold from 62 to 293 stores, their number of stores in Bangalore grew three-fold from 110 to 331 stores, their number of stores in Hyderabad grew over two-fold from 141 to 309 stores. Their number of stores in Kolkata grew over eight-fold from 22 to 201 stores. In terms of the number of stores as of March 31, 2021, they ranked 1st in Chennai and Bangalore and 2nd in Hyderabad and Kolkata, according to the Technopak report
MedPlus Health Services IPO – Financial Statements
A quick look into the past financial performance of the Company to understand its implementation of the business and evaluate the growth prospectus:
Financial Summary:
| Amount (in INR & Million) |
| 31-Mar-21 | 31-Mar-20 | Mar-19 |
| Total Assets | 15,656.58 | 13,486.96 | 9,587.11 |
| *Total Revenue | 30,908.14 | 28,878.87 | 22,849.40 |
| Total Expense | 29,957.16 | 28,585.28 | 22,621.89 |
| Profit After Tax | 631.11 | 17.94 | 119.22 |
Earnings per Equity Share (in Million)
| 31-Mar-21 | 31-Mar-20 | Mar-19 |
| Basic | 30.64 | 1.05 | 5.76 |
| Diluted | 29.38 | 1.01 | 5.52 |
Further, their PAT for the period ended on March 31, 2021, March 31, 2020, and March 31, 2019, were Rs. 631.11 Million, Rs. 17.94 Million, and Rs. 119.22 Million, respectively.
The Promoter of this Company is:
- GANGADI MADHUKAR REDDY,
- LONE FURROW INVESTMENTS PRIVATE LIMITED
- AGILEMED INVESTMENTS PRIVATE LIMITED
- Ganga Madhukar Reddy, Managing Director and Chief Executive Officer
- Anish Kumar Saraf, Non-Executive Director
- Atul Gupta, Non-Executive Director
- Murali Sivaraman, Non-Executive Independent Director
- Madhavan Ganesan, Non-Executive Independent Director
- Hiroo Mirchandani, Non-Executive Independent Director
MedPlus Health Services IPO Offer Details or Issue Details
| Particulars | No. Of Equity Shares |
| Equity Shares Offered | Up to X Equity Shares aggregating up to Rs.16,387.16 Million |
| of which: | |
| Issue Reserved for the Market Makers | Up to [●] Equity Shares aggregating up to Rs.[●]
Million |
| Net Issue to the Public | Up to [●] Equity Shares aggregating up to Rs.[●]
Million |
| Of which: | |
| Retail Investors Portion | Not less than [●] Equity Shares |
| Other than Retail Individual Investors | Not more than [●] Equity Shares |
| Equity Shares outstanding before the Issue | 32,202,130 Equity Shares |
| Equity Shares outstanding after the Issue | X Equity Shares |
MedPlus Health Services IPO Issue Object
Their Company proposes to utilize the Net Proceeds towards funding the following objects:
- Funding working capital requirements of their Material Subsidiary, Optical; and
- General corporate purposes.
MedPlus Health Services IPO – Business Strategy
- Strengthen Their Market Position by Increasing Store Penetration in Existing Clusters and Developing New Clusters
- Further, Develop Their Omni-channel Platform with a Hyperlocal Delivery Model
- Increase Their Share of Private Labels and Enhance Their Stock Keeping Unit (“SKU”) Mix
- Enhance Revenue and Increase Customer Wallet Share Through Continued Investment in Technology Infrastructure and Expansion into Adjacent Healthcare Vertical
- Continue to Increase Operating Efficiency and Enhance Supply Chain Management to Drive Profitability
MedPlus Health Services IPO – Basis of Offer Price
The Company determines the issue price in consultation with the Lead manager based on qualitative and quantitative factors.
Qualitative factors are:
- India’s Second Largest Pharmacy Retailer;
- Established Brand and Value Proposition to Customers;
- Successful Track Record of Expansion Using a Distinct Cluster-based and Replicable Store Unit Expansion Approach;
- High-Density Store Network Enhancing Omni-channel Proposition;
- Lean Cost Structure and Technology-Driven Operations; and
- Well Qualified, Experienced and Entrepreneurial Board and Senior Management Team
The relevant quantitative factors are:
| Basic EPS | Diluted EPS
| ROW (%) | NAV (Rs.) |
| 31-Mar-21 | 6.13 | 5.88 | 8.74 | 65.37 |
| 31-Mar-20 | 0.21 | 0.20 | 0.41 | – |
| Mar-19 | 1.15 | 1.10 | 4.09 | – |
MedPlus Health Services IPO: Competitive Peers
| Face Value (Rs.) | P/E | EPS (Rs.) | Return on Net Worth (%) | Total Income (Rs. in Millions) |
| MedPlus Health Services Limited | 2 | [●] | 6.13 | 8.74 | 30,908.14 |
| Listed Peers | | | | | |
| NA | – | – | – | – | – |
MedPlus Health Services IPO Lead Managers
| Lead Managers |
Axis Capital Limited
- Credit Suisse Securities (India) Private Limited
- Edelweiss Financial Services Limited
- Nomura Financial Advisory and Securities (India) Private Limited
|
MedPlus Health Services IPO Review by Stock Brokers
| Top Stock Brokers Review | Company Reputation | Competitive Edge | Financial Statement | Popularity Index | Promoters Reputation |
| Angel Broking | 7.5/10 | 7.4/10 | 8.5/10 | 8.1/10 | 7.1/10 |
| Sharekhan | 7.2/10 | 7.1/10 | 8.6/10 | 8.1/10 | 7.2/10 |
| Kotak Securities | 7.3/10 | 7.5/10 | 8.4/10 | 8.1/10 | 7.3/10 |
| ICICI Direct | 7.3/10 | 7.3/10 | 8.7/10 | 8.1/10 | 7.1/10 |
| FL | 7.5/10 | 7.2/10 | 8.8/10 | 8.0/10 | 7.1/10 |
| Edelweiss | 7.5/10 | 7.4/10 | 8.4/10 | 8.3/10 | 7.2/10 |
| Zerodha | 7.4/10 | 7.1/10 | 8.5/10 | 8.1/10 | 7.0/10 |
| 5Paisa | 7.1/10 | 7.1/10 | 8.4/10 | 8.1/10 | 7.1/10 |
| Karvy | 7.4/10 | 7.3/10 | 8.2/10 | 8.1/10 | 7.1/10 |
| Motilal Oswal | 7.1/10 | 7.1/10 | 8.6/10 | 8.3/10 | 7.2/10 |
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