Medplus Health Services Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹796
Per ShareLot Size
18 Shares
Minimum Investment
₹14,328
Issue Size
₹1,398.3 Cr
Face Value
₹2
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Medplus Health Services Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
43.16%
Promoter Holding (Post-Issue)
40.43%
Issue Type
Book Building
ISIN
INE804L01022
About the Company
MedPlus Health Services Limited is the second largest pharmacyretailer in India in terms of revenue fromoperations and number of stores, as of financial year 2021. The Company offers a wide range of products, including (i) pharmaceutical and wellness products such as medicines, vitamins, medical devices and test kits, and (ii) FMCG products such as home and personal care products, including toiletries, baby care products, soaps and detergents and sanitizers. It was the first pharmacyretailer in India to offer an omni-channel platform and continue to scale up its retail store network.
Industry Overview
In terms of the Technopak Report, the pharmacy retail industry is expected to grow at a CAGR of 11% in the next four years, with FMCG products playing an increasingly important role in the product mix with sales contributions of up to 30% for modern organized pharmacy stores. As per the Technopak Report, the modern pharmacy retail segment is estimated to grow at 27% CAGR, and faster than other segments within pharmacy retail. B&M stores adopting the hyperlocal model and omnichannel retail platform is also emerging as important players in the pharmacy retail market.
Company History
Medplus Health Services Limited was incorporated as `MedPlus Health Services Private Limited' at Hyderabad, Andhra Pradesh as a private limited company under the Companies Act, 1956, and was granted the certificate of incorporation on November 30, 2006 by the Registrar of Companies, Andhra Pradesh at Hyderabad. The Company was converted from a private limited company to a public limited company, pursuant to a special resolution passed by its Shareholders at the extraordinary general meeting held on June 1, 2021 and the name of the Company was changed to `MedPlus Health Services Limited'. Consequently, a fresh certificate of incorporation was issued by the Registrar of Companies, Telangana at Hyderabad ("RoC") on June 28, 2021.
Products & Services
- The Company operates pharmacy retail network of over 2,000 stores distributed across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal and Maharashtra. The Company also operates an online sales platform
Growth Strategy
- Strengthen its market position by increasing store penetration in existing clusters and developing new clusters
- Further develop its omni-channel platform with a hyperlocal delivery model
- Increase its share of private labels and enhance its stock keeping unit("SKU") mix
- Enhance revenue and increase customer wallet share through continued investment technology infrastructure and expansion into adjacent healthcare vertical
- Continue to increase operating efficiency and enhance supply chain management to drive profitability
Customer Base
Wholesalers and Retailers
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offering of 17,573,342* equity shares of face value of Rs. 2 each ("Equity Shares") of Medplus Health Services Limited (The "Company" or the "Company" or the "Issuer") for cash at a price of Rs. 796 per equity share (including a premium of Rs. 794 per equity share) ("Offer Price") aggregating to Rs. 1398.30 crores (The "Offer"), comprising of a fresh issue of 7,544,511 equity shares aggregating to Rs. 600.00 crores (The "Fresh Issue") by the company and an offer for sale of 10,028,831 equity shares aggregating to Rs. 798.30 crores (The "Offer for Sale"), comprising of 7,826,626 equity shares aggregating to Rs. 623.00 crores by PI Opportunities Fund - I ("Investor Selling Shareholder"), 1,344,221 equity shares aggregating to Rs. 107.00 crores by S. S. Pharma LLC, 402,010 equity shares aggregating to Rs. 32.00 crores by Shore Pharma LLC, 125,628 equity shares aggregating to Rs. 10.00 crores by Natco Pharma Limited, 125,628 equity shares aggregating to Rs. 10.00 crores by Time Cap Pharma Labs Private Limited, 89,547 equity shares aggregating to Rs. 7.13 crores by A. Raghava Reddy, 53,115 equity shares aggregating to Rs. 4.23 crores by K. Prakurthi, 27,135 equity shares aggregating to Rs. 2.16 crores by Navdeep Patyal, 18,467 equity shares aggregating to Rs.1.47 crores by Sangeeta Raju, 14,974 equity shares aggregating to Rs. 1.19 crores by R. Venkat Reddy, 276 equity shares aggregating to Rs. 0.02 crores by TK Kurien, 251 equity shares aggregating to Rs. 0.02 crores by Nithya Venkataramani, 251 equity shares aggregating to Rs .0.02 crores by Atul Gupta, 251 equity shares aggregating to Rs. 0.02 crores by Manoj Jaiswal, 251 equity shares aggregating to Rs. 0.02 crores by Rahul Garg, 100 equity shares aggregating to Rs 0.008 crores by Kollengode Ramanathan Lakshminarayana and 100 equity shares aggregating to Rs.0.008 crores by Bijou Kurien (collectively, the "Other Selling Shareholders" and collectively with the investor selling shareholder are referred to as the "Selling Shareholders") and such equity shares, the "Offered Shares"). The offer includes a reservation of 69,637 equity shares, aggregating up to Rs. 5.00 crores (constituting up to 0.06% of the post-offer paid-up equity share capital), for subscription by eligible employees (as defined hereinafter) ("Employee Reservation Portion"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The company and the investor selling shareholder may, in consultation with the book running lead managers, offer a discount of 9.80 to the offer price to eligible employees bidding in the employee reservation portion ('Employee Discount"). The offer and the net offer shall constitute 14.72% and 14.67%, respectively, of the post-offer paid-up equity share capital of the "Company"). The face value of equity shares is Rs. 2 each. The offer price is 398 times the face value of the equity shares. *Subject to finalisation of the basis of allotment. #A discount of Rs. 78 per equity share was offered to eligible employees bidding in the employee reservation portion. Bids can be made for minimum 18 equity shares and in multiples of 18 equity shares thereafter.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- India's Second Largest Pharmacy Retailer;
- Established Brand and Value Proposition to Customers;
- Successful Track Record of Expansion Using a Distinct Cluster-based and Replicable Store Unit Expansion Approach;
- High Density Store Network Enhancing Omni-channel Proposition;
- Lean Cost Structure and Technology Driven Operations;
- The company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will receive the net proceeds from the Offer for Sale.
- One of its Promoters, Lone Furrow Investments Private Limited, has pledged a portion of its shareholding with certain lenders under various loan and security agreements. Any exercise or enforcement of such pledge could dilute the shareholding of Lone Furrow Investments Private Limited, which may adversely affect its business and future prospects.
- Its insurance coverage may not be adequate to protect its against all potential losses to which It may be subject to and this may have a material adverse effect on its business.
- Its funding requirements and proposed deployment of the Net Proceeds are based on management estimates and have not been independently appraised by any bank or financial institution or other independent agency and may be subject to change based on various factors, some of which are beyond its control.
- There have been instances of negative cash flows in the last three financial years.