MedPlus Health Services IPO: Price Band, GMP And Other Details
On Monday, subscriptions for MedPlus Health Services’ initial public offering (IPO) were available. The three-day promotion will end on December 15th.The IPO consists of a fresh issuance of 600 crore equity shares and an offer for sale (OFS) of up to 798.30 crore equity shares by the promoter and existing shareholders. MedPlus has reduced the size of the OFS from 1,038.71 crore to 798.30 crore.
For its inaugural share offering, the company has set a price range of $780-796 per share.The issue includes a reservation of 5 crore in equity shares for the company’s employees, who would get them at a discount of 78 per share from the final issue price.Qualified institutional buyers (QIBs) will receive half of the issue size, non-institutional investors will receive 15%, and retail investors will receive 35%.
Investors can place bids for as few as 18 equity shares and as many as they want. One batch of MedPlus shares will cost $14,328 at the high end.The proceeds of the new issue will be utilized to meet the working capital needs of Optival, the company’s subsidiary.According to market experts, the drugstore company is currently trading in the gray market for a premium of $300, at the issue’s upper price band.The issue’s book running lead managers are Axis Capital, Credit Suisse Securities (India), Nomura Financial Advisory and Securities (India), and Edelweiss Financial Services.Prior to its initial share sale, the drugstore retail network has raised Rs 418 crore from anchor investors.
“With the entire transformation in organized retail pharmacies, Medplus is the only one in the country with an omni-channel platform. We advise subscribing to the issue due to its increased scale and profitability, as well as the favorable forecast for organized retail pharmacy in the next years “ShareIndia’s Vice President and Head of Research, Ravi Singh, stated.”The initial public offering appears to be a huge success. It is India’s second-largest health-care IPO, with strong management and sales across all platforms, including online, over the phone, and in retail stores. It has robust development, despite being mostly based in the south, with fierce competition from both the unorganized and organized sectors, and the Covid era’s growth is sustainable “GCL Securities’ Vice Chairman, Ravi Singhal, stated.
Gangadi Madhukar Reddy, the company’s managing director and chief executive officer, launched MedPlus in 2006.The Hyderabad-based pharmacy shop sells a variety of products, including pharmaceutical and wellness items like medicines, vitamins, medical gadgets, and test kits, as well as fast-moving consumer goods like toiletries, infant care items, soaps & detergents, and sanitizers.
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