Medplus Health IPO opens on December 13; Here are ten things you should know before investing.
Medplus has filed its initial public offering to raise a total of Rs 1,398.29 crore through a new issue of 600 crore of shares and the sale of 798.29 crore of shares by selling shareholders.
Based on the operating revenues for 2021 and the number of stores as of March 31, 2021, Medplus Health Services Ltd was founded on November 30, 2006.
The Company offers a variety of the Company’s products, including pharmaceutical and wellness products (drugs, vitamins, medical devices, and test kits), as well as fast-moving consumer goods (home and consumer products). personal care, such as toiletries, baby care products, soaps and hand detergents and sanitizers).
On December 13, medplus will launch its initial public offering (IPO).
Before subscribing to the public show, here are ten essential things to know:
A subscription period will begin on December 13 and end on December 15, when the company will launch its IPO.
An offer price range of Rs 780-796 per share with a par value of Rs 2 has been set.
To raise a total of Rs 1,398.29 crore, the company will issue new shares worth Rs 600 crore and make an offer to sell (OFS) of shares worth 798.29 crore of Rs to existing shareholders.
Shares valued at Rs 623 crore will be sold by Investor PI Opportunities Fund-I, and shares valued at Rs 107 crore will be sold by SS Pharma LLC.
Employees of the company are entitled to receive shares worth Rs 5 crore as part of the offer. A discount of Rs 78 per share will be offered to eligible employees as part of the final offer price.
The net proceeds will be divided among qualified institutional buyers (half), non-institutional bidders will receive 15% and retail investors will receive 35%.
In addition to the working capital needs of the Optical Health Solutions subsidiary, the proceeds from the offering will be used in the general operations of the company.
- Land size and share reserved for investors
Shares can be purchased in multiples of 18 shares for a minimum offering of 18 participating shares. Retail investors can invest for a minimum investment of Rs 14,328 and a maximum investment of Rs 1,86,264 for 13 lots.
Company and Industry Profiles
Managing Director and CEO Gangadi Madhukar Reddy founded the company in 2006. Using technology to reduce inefficiencies in the supply chain, he envisioned building a trustworthy pharmacy brand that offered genuine medicines and offered better value to its customers.
March 31, 2021, Medplus will work with more than 2,000 pharmacies in Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal and Maharashtra, the second largest chain of pharmacies in India.
In these states, the company accounts for a substantial share of the organized pharmacy retail market in terms of operating revenue, with around 30 percent in Chennai, 29 percent in Bengaluru, 30 percent in Hyderabad and 22 percent in Kolkata. .
Pharmacy retailer Medplus offered the first omnichannel platform in India in 2015 and began to actively market online sales in fiscal 2020.
Automated replenishment and inventory selection is supported by a real-time inventory analysis platform that drives the company’s supply chain. Inventories are usually purchased directly from pharmaceutical manufacturers.
Medplus profits increased sharply from FY20 when a profit of Rs 1.79 crore was recorded. Income increased from Rs 2,870.6 crore to Rs 3,069.26 crore during the same period.
As of September 2021, profit was Rs 66.36 crore, compared to Rs 22.27 crore in the same period of the previous year, and income was Rs 1,879.92 crore, compared to Rs 1,462.55 crore.
In FY20, net margins were 0.06%, while in FY21 they were 2.06%. The company reported a net margin of 3.53% for the six-month period ended September 30, 2021.
The company’s operating EBITDA was Rs 107.85 crore in the six months ended September 30, 2021, compared to Rs 65.73 crore in fiscal 2019 and 175.06 crore. of Rs in fiscal year 21, representing a compound annual growth rate of 63.21 percent.
As of September 30, 2021, operating return on capital employed was 19.87%, 26.08% and 13.40%, respectively, for fiscal years 2020 and 2021.
A wider range of therapeutic products may be affected by government price caps, which may adversely affect the business of the company. The promoter also pledges part of his shares.
In addition, online pharmacies are increasingly competitive. The EBITDA of some of the new stores has been delayed in recent years. As a result, the cash flow and working capital requirements of the business are affected.
Lone Furrow Investments Pvt Ltd, Agilemed Investments Pvt Ltd and Gangadi Madhukar Reddy are the promoters of the company.
Since the company’s founding in 2006, Reddy has served as Managing Director and CEO.
A non-executive director is Anish Kumar Saraf, and a non-executive director is Atul Gupta. The independent non-executive directors, Murali Sivaraman, Madhavan Ganesan and Hiroo Mirchandani, sit on the board of directors.
- Key management personnel
The CEO of Point of Sale Operations is Cherukupalli Bhaskar Reddy, while the CEO of MedPlus Mart is Surendranath Mantena.
Company Secretary Parag Jain is in charge of compliance and Hemanth Kundavaram is CFO.
- BPF, date of listing and allocation
According to IPO Watch, the gray market premium on the public issue is Rs 300 per share.
By December 20, the share allocation will be complete and unsuccessful investors will make the redemptions. On December 22, complaints will be sent to Demat accounts of successful investors.
Medplus shares will debut on December 23 on the BSE and NSE.