Hyderabad-based MedPlus Health Services, the second-largest pharmacy retailer in India, has set a price band of Rs 780-796 for its IPO on December 13.
In August 2021, the Hyderabad-based pharmacy retail chain filed the Draft Red Herring Prospectus (DRHP) with SEBI for its IPO. MED PLUS Health Services Ltd said on Monday that it has received approval from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO).
In 2006, Gangadi Madhukar Reddy founded MedPlus. At present, MedPlus is one of India’s leading pharmacy chains, with over 1050 pharmacies serving over 1.5 million customers each day.
MedPlus sells prescription and over-the-counter medicines, FMCG products, vitamins and other nutrition supplements, as well as optical products. As of March 31, 2021, the company will have over 2,000 stores across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal, and Maharashtra.
As part of the IPO, new equity shares worth Rs 600 crores will be issued, while the promoters and existing shareholders will sell equity shares worth Rs 798.29 via an offer-for-sale (OFS). It includes a reservation of equity shares worth Rs 5 crores for the company’s employees, who will receive them at a discount of Rs 78 per share from the final issue price.
Lone Furrow Investments sold equity shares worth up to Rs 450 crore, PI Opportunities Fund I sold equity shares worth up to Rs 500 crore, and other selling shareholders sold equity shares worth up to Rs 88.71 crore, consisting of certain entities and individual selling shareholders.
In addition to funding the company’s working capital needs, the net proceeds will be used for general corporate purposes. In FY21, revenue from operations was Rs 3,069 crore. Axis Capital, Credit Suisse Securities, Edelweiss, and Nomura are the book running lead managers.
