IPO

Medplus Health Services Limited IPO : Key Highlights and Company Information

Medplus Health Services Limited initiated its operations in 2006. It has earned the stage of being the second highest retailer in India. It has a huge diversified product portfolio to offer its customers through an omnichannel mode. The current store number is 2165. The location of stores is in Tamil Nadu, Telangana, Andhra Pradesh, Odisha, Karnataka, Maharashtra and West Bengal. Its warehousing facility is also domestically available.

IPO DETAILS

Medplus Health Services Limited IPO is set to launch on 13th Dec., 2021. The subscription timeline extends till 15th Dec, 2021. The size for the IPO is 1398.30 Crore Rs.. Shares issued through Fresh Issue are worth Rs. 600 Crore Rs. Shares issued through Offer for Sale are worth Rs. 798.30 Crore. The lot size is 30 shares and the price range is 780 Rs. – 796 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs. 2 and this is a book built issue. The registrar for the company is Karvy Fintech Private Limited.

TABULAR REPRESENTATION OF IPO DETAILS

IPO OPENING DATE	13th Dec, 2021
CLOSING DATE FOR IPO	15th Dec, 2021
ISSUE TYPE	Book Built Issue
Face Value per share	2 Rs. per share
IPO price band	780 Rs. – 796 Rs.
LOT SIZE	18 shares
MINIMUM ORDER QUANTITY	18 shares
ISSUE SIZE	1398.30 Crore Rs.
OFFER FOR SALE	798.30 Crore Rs.
FRESH ISSUE	600.00 Crore Rs.
LISTING AT	NSE, BSE
LISTING DATE	23rd Dec, 2021

IMPORTANT DATES

IPO OPENING DATE	13th Dec, 2021
CLOSING DATE FOR IPO	15th Dec, 2021
IPO ALLOTMENT DATE	20th Dec, 2021
REFUNDS	21st Dec, 2021
DEMAT A/C CREDITED ON	22nd Dec, 2021
IPO LISTING DATE	23rd Dec, 2021

Medplus Health Services Limited IPO begins for subscription from 13th Dec, 2021. The IPO subscription would continue till 15th Dec, 2021. The allotment status for the shareholders who applied would come on 20th Dec, 2021. The refunds for the ones who did not get allotment would be initiated on 21st Dec, 2021. The DEMAT accounts of shareholders would be credited on 22nd Dec, 2021. The listing of the company would be accompanied on 23rd Dec, 2021.

Lead Managers And Promoters

The promoters of the company are Lone Furrow Investments Pvt Ltd, Gangadi Madhukar Reddy and Agilemed Investments Pvt Ltd.

The lead managers are :

Axis Capital Limited
Nomura Financial Advisory and Securities Pvt Ltd
Edelweiss Financial Services Limited
Credit Suisse Securities India Private Limited

The minimum lot size for the company is decided at 18 shares. This holding accounts to 14328 Rs.. The maximum lot size is decided at 234 shares. This amounts to 186264 Rs.. Hence the company’s final holdings would be set as :

	Shares	Amount
Minimum	18 shares	14328 Rs
Maximum	234 shares	186264 Rs

OBJECTIVES FOR THE IPO

The funds can be utilised for General corporate purposes.
Funding requirements of the company.

COMPANY FINANCIALS

Particulars (in Million Rs.)	2020-21	2019-20	2018-19
ASSETS	15656	13487	9587
REVENUE	30908	28878	22850
NET PROFIT	631	17	119

The company’s revenues are surging with time. There is a great improvement in the recent profit streams of the company. The assets of the company have increased in a steady way for 3000 to 4000 Crore Rs. However the profits are very unstable. The first year showed a profit of 119 Crore Rs and then the sudden drop of profit was at 17 Crore Rs. Again in 2021 the profits were 630 Crore Rs. Thus the COVID has proved extremely profitable and a game changer for the company. Alongwith this the recent results for half year display a profit of 600 Crore Rs which shows the benefit of omnichannel mode of work for the company. This method set the group up for MEdplus during the COVID crissi and hence the company has been able to establish a good customer base.

PROS

It is the second most used pharma retailer in India.
The store number for the company is 2165.
Warehousing of the company is also handled domestically in the states where it’s business is maxed out.
Offers omni channel platform to the customer base it has.

CONS

Profit damp is noticeable in 2020. Alongwith this the revenues have increased steadily but the huge increase in profit is suspicious initially. COVID is definitely a reason for the same.