Medplus Health Services IPO is set to debut on the stock market with an issue size of INR ₹1398.3 Cr. It is India’s second-largest pharmacy retailer in terms of the number of stores and revenue that offers pharmaceutical and wellness products.
Medplus Health Services IPO Overview
Medplus Health IPO Tentative Dates
|Medplus Health Services Limited IPO opening date||13 December 2021|
|Medplus Health Services Limited IPO closing date||15 December 2021|
|Basis of Allotment||20 December 2021|
|Initiation of Refunds||21 December 2021|
|Medplus Health Services Limited IPO Listing Date||23 December 2021|
Medplus Health Services IPO Industry Overview
India’s domestic pharmaceutical market was valued at ₹ 1,500 billion in the financial year 2020, having grown at a CAGR of approximately 10% in the last five years, and is expected to grow at a similar rate going forward. The key market characteristics of the domestic pharmaceutical market include a low per capita health expenditure, a high share of private out-of-pocket expenses (which includes purchases from pharmacies), and lower penetration across rural areas which has led to a high opportunity for growth given the limited penetration of health services in rural and urban areas.
The graph below sets out the regional estimated per capita per annum health expenditure for India in INR
The domestic pharmaceutical market in India can be segmented based on the type of drugs sold, which includes prescription drugs and OTC drugs. Prescription drugs further comprise generic drugs (including branded generics and ordinary generics) and branded patented drugs. Branded generics attach proprietary names to generic drug molecules whereas ordinary generic drugs are known by their chemical names. During the financial year 2020, generic drugs accounted for75% of the total domestic market, with over-the-counter drugs and branded patented drugs accounting for 18% and 7%, respectively.
Medplus Health Services IPO Company Overview
Medplus health services offer pharmaceutical and wellness products including medicines, vitamins, medical devices, test kits, and fast-moving consumer goods including home and personal care products, baby care products, sanitizers, soaps, and detergents. The first pharmacy retailer in India to offer an omnichannel platform.
They have maintained a strong focus on scaling up their store network, having grown from operating 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,
They operated 546 stores in Karnataka, 475stores in Tamil Nadu, 474stores in Telangana, 297stores in Andhra Pradesh, 224stores in West Bengal, 221stores in Maharashtra, and 89stores in Odisha. They have continued to expand their store footprint in key cities where they operate and between March 31, 2010, and September 30, 2021, the number of stores in Chennai grew almost five-fold from 62 to 304stores, The number of stores in Bangalore grew three-fold from 110 to 340stores, The number of stores in Hyderabad grew over two-fold from 141 to 331stores, and their number of stores in Kolkata grew over ten-fold from 22 to 224 stores.
Medplus Health Services IPO-Objectives
- To meet future capital requirements.
- To General corporate purposes.
Medplus Health Services IPO Financial Statements
Summary of financial Information (Restated Consolidated)
|Profit After Tax||663.67||631.11||17.94||119.22|
Medplus Health Services IPO Strengths
- India’s Second largest pharmacy retailer company.
- Strong brand name and customer value proposition.
- Pharmacy retail outlet network of 2000+ stores in Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal, and Maharashtra.
- First pharmacy retailer to provide an Omni-channel platform to customers.
- Highly qualified, experienced, and professional management team.
Medplus Health Services IPO Weakness
- Changes in prescription drug pricing and commercial terms could adversely affect its operations.
- The company is subjected to regulatory scrutiny and non-compliance will affect the business.