Medplus Health Services IPO - Information Note

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Here are some of the key aspects of the Medplus Health Services business model

A) The stores are predominantly in Southern metros like Bengaluru, Hyderabad and Chennai which are some of the fastest growing markets for pharmacies.

B) Its average revenue per store at Rs.1.59 crore is more than 6 times what the average pharmacy store in India is able to earn.

C) The pharmacy store network has grown from 635 stores in 2010 to the current level of 2,326 stores as of September 2021.

D) Medplus is currently working towards a comprehensive omnichannel model where customers can get a quality experience across locations as well as offline and online.

E) Medplus owns and operates nearly 95% of its store network with just about 5% of the network under franchise arrangement, giving them much better process control.
 

Check - Medplus Health Services IPO - 7 Things to Know

How is the Medplus Health Services IPO structured?

b) The OFS component will comprise the issue of 1,00,28,831 shares and at the upper price band of Rs.796, OFS value works out to Rs.798.30 crore. That takes the total size of the Medplus IPO to Rs.1,398.30 crore.

c) Out of the OFS of 100.29 lakh shares, promoters are not selling any take. Among early investors, PI Opportunities Fund will sell the bulk of 78.30 lakh shares, SS Pharma LLC will sell 13.44 lakh share and Shore Pharma LLC will sell 4.02 lakh shares in the OFS.

d) While promoters are not selling in the OFS, due to the impact of the fresh issue, the promoter stake will come down from 43.16% to 40.43%. Public shareholding overall will go up to 59.21% post issue.

Key Financial parameters of Medplus Health Services