Medplus Health Services IPO - 7 Things to Know
Medplus Health Services Ltd is the second largest pharmacy retail chain in India in terms of number of stores and revenues. It retails pharmaceuticals and wellness products including medicines, vitamins, medical devices, test kits, home care products, sanitary products, baby care products, etc. Here is the gist of the proposed IPO of Medplus.
Seven Interesting Facts to know about the Medplus Health Services Ltd IPO
1) Medplus Health Services boasts of a strong pharmacy network of over 2,165 outlets spread across the states of Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha and Maharashtra. It has an approximate median market share of 25-30% of the organized pharmacy retail business in most of the geographies that it operates.
2) The IPO opens on 13-December and closes for subscription on 15-December. The basis of allotment will be finalized on 20-December while the refunds will be initiated on 21-December. The demat credits to eligible shareholders will happen on 22-December while the actual listing on NSE and BSE will be done on 23-December.
3) The IPO will be a combination of a fresh issue and an offer for sale. The price band for the IPO has been set at Rs.780 to Rs.796. The company will raise Rs.600 crore via a fresh issue of shares and will raise another Rs.798.30 crore as part of the offer for sale. This will take the total size of the IPO to Rs.1,398.30 crore.
4) The Medplus IPO will have a 50% allocation for QIBs and 35% for retail investors. Investors can apply in minimum lots of 18 shares and retail investors can apply for a maximum of 13 lots (234 shares) in the IPO valued at Rs.186,264. Post the IPO, the promoter stake in the company will come down from 43.16% to 40.43%.
5) In terms of financials, the company is a consistently profit making company. It reported revenues of Rs.3,091 crore for fiscal year FY21, showing a steady increase in revenues over the last 2 years. The company made a profit of Rs.63.11 crore in FY21, implying net profit margins of around 2.04%. Pharmacy retail is a high volume, low margin business.
6) The fresh funds will be used for funding the working capital needs of its subsidiary, Optival and also for general corporate purposes. The OFS portion will not result in any fresh inflow into the company but the listing will enable the company to get better visibility to be able to use equity as a future currency for inorganic growth.
7) The Medplus Health Services IPO will be lead managed by a host of marquee names like Axis Capital, Credit Suisse India, Edelweiss Financial and Nomura Financial Advisory. The registrar to the issue will be KFintech Private Limited (formerly Karvy Computershare).
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