Medplus Health Services IPO: Issue Price, Issue Size, GMP & Important Dates

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Medplus Health Services Limited IPO
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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 Services Limited Issue Date   13-15 December 2021  
Medplus Health Services Limited IPO Opening Date   13 December 2021  
Medplus Health Services Limited IPO Face Value   INR 2 per share   
Medplus Health Services Limited IPO Price   INR 796 per share  
Medplus Health Services Limited IPO Lot Size   18 Shares  
Issue Size   1,398.30 Cr  
Fresh Size   600 cr  
Offer for sale   798.30 Cr  
Issue Type   Book built Issue IPO   
Listing At   BSE, NSE  
QIB Shares Offered   Not more than 50% of the net offer  
NII (HNI) Shares Offered   Not less than 15% of the net offer  
Retail Shares Offered   Not less than 35% of the net offer  
Company Promoters   Ganga Madhukar Reddy, Lone Furrow Investments Pvt Ltd, and Agilemed Investments Pvt Ltd are the company promoters.  

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 

Medplus Health Services IPO

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

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)  

Particulars  30-Sep-21  31-Mar-21  31-Mar-20  31-Mar-19  
Total Assets  17,464.94  15,656.58  13,486.96  9,587.11  
Total Revenue  18,908.99  30,908.14  28,878.87  22,849.40  
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.  

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