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Warburg Pincus Exits MedPlus Health Services, Sells 11.35% Stake for Rs 836 Crore

• ByStartupStory     |    August 27, 2024

Private equity giant Warburg Pincus has exited MedPlus Health Services by selling its entire 11.35% stake in the pharmacy chain. The sale, conducted through an open market transaction, fetched Warburg Pincus Rs 836 crore.

According to bulk deal data available on the National Stock Exchange (NSE), Lavender Rose Investment Ltd, a Mauritius-based unit of Warburg Pincus, offloaded 1.35 crore shares, representing its entire 11.35% stake in MedPlus Health Services. The shares were sold at Rs 616.48 apiece, resulting in a total deal value of Rs 836.16 crore.

Among the buyers, the Singapore government and ICICI Prudential Mutual Fund acquired a significant portion, purchasing 62.45 lakh shares or a 5.2% stake in MedPlus Health Services. The shares were bought within the price range of Rs 616-616.20 apiece, amounting to a transaction value of Rs 384.72 crore. The identities of other buyers involved in the transaction have not been disclosed.

Following the transaction, shares of MedPlus Health Services experienced a slight uptick, closing 0.55% higher at Rs 638.50 on the NSE.

This move marks a complete exit for Warburg Pincus from MedPlus Health Services, as the private equity firm had initially invested in the company to capitalize on the growing demand for organized pharmacy retail in India. MedPlus, one of the leading pharmacy chains in the country, operates over 2,000 stores across India and has been expanding its presence steadily.

The transaction highlights the continued interest of institutional investors in India’s booming healthcare and retail sectors, as well as the confidence in MedPlus Health Services’ growth trajectory.

Warburg Pincus’ decision to exit comes at a time when MedPlus is focusing on strengthening its foothold in the pharmacy retail market by enhancing its product offerings and expanding its geographical reach.

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