According to the Technopak Report, MedPlus Health Services Limited is India’s second-largest pharmacy operator in terms of income from operations for the financial year 2021 and the number of outlets as of March 31, 2021. The Medplus IPO will take place on December 13, 2021.
About MedPlus Health Services Limited Company
Gangadi Madhukar Reddy, their Managing Director, and Chief Executive Officer founded their company in 2006 intending to make a reliable pharmacy retail brand that offers genuine medicines and provides greater value to customers by minimizing inefficiencies in the supply chain through innovation. According to the Technopak Report, they are India’s second-largest pharmacy retailer in terms of revenue from operations for the financial year 2021 and store count as of March 31, 2021. Medplus IPO sells a variety of products, including pharmaceutical and wellness products like medicines, vitamins, medical gadgets, and test kits, as well as fast-moving consumer goods like toiletries, infant care products, soaps, and detergents, and hand sanitizers.
The company has a robust pharmacy retail network of 2,165 outlets throughout Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal, and Maharashtra as of June 30, 2021. Based on revenue from operations in Chennai, Bangalore, Hyderabad, and Kolkata in the financial year 2021, its share of the organized pharmacy retail market was 30 percent, 29 percent, 30 percent, and 22 percent, respectively. It employs a cluster-based retail network growth strategy, in which it first establishes a high shop concentration in a densely populated residential area inside a target market. Bengaluru, Chennai, Hyderabad, Vijaywada, Kolkata, Pune, Bhubaneshwar, Mumbai, and Nagpur are among the company’s warehouses. Gangadi Madhukar reddy, lone furrow investments private limited, and agilemed investments private limited are the company’s promoters. Axis Capital Limited, Credit Suisse Securities (India) Private Limited, Edelweiss Financial Services Limited, and Nomura Financial Advisory and Securities (India) Private Limited are the issue’s lead managers, and KFin Technologies Private Limited is the issue’s Registrar.
Medplus Health IPOCompetitive Advantages
Some of the major Competitive advantages are as follows:
A powerful brand name and a compelling customer value proposition.
In India, it is the second-largest pharmacy store.
Customers are the first to benefit from an Omni-channel platform provided by a pharmacy.
In Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal, and Maharashtra, there are about 2000 pharmacies.
A highly qualified, experienced, and competent management team.
Some of the major companies’ risks are as follows:
Price and commercial terms changes in prescription medicines may have a bad effect on their business.
The use and sharing of individually sensitive information, particularly personal health information, is governed by privacy and security standards.
COVID-19’s future consequence on their business is uncertain and cannot be predicted.
If we do not efficiently manage inventories and estimate demand, their financial success may be compromised
Their business, subsidiaries, promoters, and directors are all embroiled in legal proceedings. Any bad decision made in any of these processes could have a detrimental influence on their business.
Cyber-attacks and information technology system failures may put them at risk.
Objectives of Medplus IPO
To achieve the company’s joint goals.
Prepayment or repayment of all or a portion of the company’s ongoing borrowings on a consolidated basis.
Medplus IPO Date & Price Band Details
IPO Opening Date
Dec 13, 2021
IPO Closing Date
Dec 15, 2021
Face Value
₹2 per equity share
Issue Type
Book Built Issue IPO
Market Lot
18 Shares
IPO Price
₹780 to ₹796 per equity share
Min Order Quantity
18 Shares
Issue Size
[.] Eq Shares of ₹2(aggregating up to ₹1,398.30 Cr)
Offer for Sale
[.] Eq Shares of ₹2(aggregating up to ₹798.30 Cr)
Fresh Issue
[.] Eq Shares of ₹2(aggregating up to ₹600.00 Cr)
Employee Discount
78
Listing At
BSE, NSE
Retail Shares Offered
35% of the net offer
QIB Shares Offered
50% of the net offer
NII (HNI) Shares Offered
15% of the net offer
Tentative Timetable for Medplus IPO
The Tentative Timetable for Medplus IPO is given in the table below
IPO Opening Date
13 December 2021
IPO Closing Date
15 December 2021
Basis of Allotment
20 December 2021
Refunds
21 December 2021
Credit to Demat Account
22 December 2021
IPO Listing Date
23 December 2021
Medplus IPO Market Lot
Minimum Lot Size:
Minimum 18 Shares for 1 lot
Maximum Lot Size:
Maximum 234 Shares for 13 lot
Minimum Amount:
₹14,328 for 1 lot
Maximum Amount:
₹186,264for 13 lot
Basis of Allotment
Type
Percent of Offer
Basis of Allotment
Qualified Institutional Buyer
50 percent
Roughly equivalent
Retail
35 percent
The minimum level of 1 lot, based on availability, for every shareholder.
Non-Institutional Investor
15 percent
Roughly equivalent
Medplus IPO Financial Report
The Medplus IPO Financial Report is given in the table below:
31 – March -2021
31 – March -2020
March – 2019
Total Assets
15,656.58 Million
13,486.96 Million
9,587.11 Million
*Total Revenue
30,908.14 Million
28,878.87 Million
22,849.40 Million
Total Expense
29,957.16 Million
28,585.28 Million
22,621.89 Million
Profit After Tax
631.11 Million
17.94 Million
119.22 Million
Earnings per Equity Share
31-Mar-21
31-Mar-20
Mar-19
Basic
30.64 Million
1.05 Million
5.76 Million
Diluted
29.38 Million
1.01 Million
5.52 Million
Company Promoters
The Medplus IPO is as follows:
S. No.
Company Promoters Name
LONE FURROW INVESTMENTS PRIVATE LIMITED
GANGADI MADHUKAR REDDY
AGILEMED INVESTMENTS PRIVATE LIMITED
Basic and Diluted Earnings per Share
Financial Period
Diluted EPS (in INR)
Basic EPS (in INR)
Weight
Financial Year 2021
5.88
6.13
3
Financial Year 2020
0.20
0.21
2
Financial Year 2019
1.10
1.15
1
Weighted Average
3.19
3.33
Promoters Holding for Medplus IPO
Pre Issue Share Holding
43.16%
Post Issue Share Holding
40.43%
MedPlus IPO GMP
Date
GMP (in Rs)
Subject to Sauda
Kostak (in Rs)
07 December 2021
220
December 2021
December 2021
December 2021
December 2021
December 2021
December 2021
December 2021
December 2021
December 2021
December 2021
December 2021
MedPlus IPO Subscription Status
Date
Day
QIB
NII
Retail
Employees
Total Subscription
13 December 2021
1
14 December 2021
2
15 December 2021
3
Medplus IPO Reviews or Ratings
Axis Capital
Neutral
MedPlus IPO Brokerage Views
Axis Securities:
Not Updated
Yes Securities:
Not Updated
ICICI Securities:
Not Updated
Trade swift:
Not Updated
Choice Brokering:
Not Updated
IIFL Securities:
Not Updated
Anand Rathi:
Not Updated
List of Related Parties i.e., Key Managerial Personnel
S. No.
Managerial Personnel Name
Designation
Gangadi Madhukar Reddy
Managing Director and Chief Executive Officer
Atul Gupta
Non-Executive Director
Anish Kumar Saraf
Non-Executive Director
Madhavan Ganesan
Non-Executive Independent Director
Murali Sivaraman
Non-Executive Independent Director
Hiroo Mirchandani
Non-Executive Independent Director
Lead Managers of Medplus IPO
Some of the Lead Managers of Medplus IPO is as follows:
S. No.
Managers Name
Credit Suisse Securities (India) Private Limited
Nomura Financial Advisory and Securities (India) Private Limited
