December 13, 2021 3:30:48 pm
MedPlus Health IPO: The initial public offering (IPO) of pharmacy retail chain MedPlus Health Services opened for subscription on Monday, December 13, 2021. The offer got 50 per cent subscribed so far till 3:30 pm on the first day of bidding.
It received total bids for 63,40,050 shares across both the stock exchanges against 1,25,75,154 shares on offer, data from BSE showed.
The Rs 1,398 crore MedPlus Health IPO will be available for subscription till Wednesday, December 15, 2021, and the price band of the company has been fixed at Rs 780-796 per share.
MedPlus Health Services is a Hyderabad-based pharmacy retail chain. It offers a wide range of products, including pharmaceutical and wellness products, such as medicines, vitamins, medical devices and test kits, and FMCG products like home and personal care items, including toiletries, baby care products, soaps and detergents and sanitisers.
The IPO comprises a fresh issuance of shares worth Rs 600 crore and an offer-for-sale (OFS) of up to equity shares aggregating up to Rs 798.30 crore by the promoter and existing shareholders.
The net proceeds from the fresh issue will be used for funding the working capital requirements of the company’s subsidiary Optival and for general corporate purposes.
Half of the issue size has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and 35 per cent for retail investors.
Investors who wish to subscribe to MedPlus Health IPO can bid in a lot of 18 equity shares and multiples thereafter. At the upper price band, they will be shelling out Rs 14,328 to get a single lot of MedPlus Health Services. The shares will be listed on both BSE as well as the National Stock Exchange (NSE).
The applicants also must note that the cut-off time for UPI mandate confirmation is Thursday, December 16, 2021, upto 12:00 pm. If they fail to do so then their application may not be considered.
Axis Capital, Credit Suisse Securities (India), Edelweiss Financial Services and Nomura Financial Advisory and Securities (India) are the book running lead managers to the offer while KFin Technologies is the registrar of the issue.
MedPlus was established in 2006 by Gangadi Madhukar Reddy, who is the managing director and chief executive officer. It was also the first pharmacy retailer in India to offer an omnichannel platform and continues to scale up its retail store network.
It is presently 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, as of March 31, 2021.
Before heading into the IPO, MedPlus raised nearly Rs 418 crore (Rs 4,17,98,84,356) from 36 anchor investors in lieu of 52,51,111 equity shares at Rs 796 each, data from the stock exchanges showed.
The anchor investors include the likes of Abu Dhabi Investment Authority, BlackRock Global Funds, Fidelity, Nomura, Goldman Sachs, Morgan Stanley, HDFC Life Insurance Company, ICICI Prudential Life Insurance Company and SBI Life Insurance Company, SBI Mutual Fund (MF) and Aditya Birla Sun Life MF.
Commenting on the IPO, Ravi Singhal, Vice Chairman at GCL Securities noted, “The IPO looks terrific; it is the second largest health services IPO in India, with good management and sales on all platforms, including online, via phone, and in retail locations. It exhibits strong development, although it is mostly based in the south, with intense rivalry from both the unorganised and organised sectors, and the growth in the Covid era is sustainable.”
The share allotment is likely to take place on Monday, December 20, 2021, and the shares are expected to be listed on Thursday, December 23, 2021, according to the timeline given in the red herring prospectus (RHP).
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