MedPlus IPO

 

MedPlus Health Services Limited is India’s second biggest pharmacy retailer in terms of income from operations for the fiscal year 2021 & number of stores as of March 31, 2021 as per the Technopak Report. MedPlus IPO will the market in 13 December 2021.

About Medplus Health Services

MedPlus Health Services Limited was incorporated in 2006 by Gangadi Madhukar Reddy, the company’s Managing Director and Chief Executive Officer, with the goal of creating a trusted pharmacy retail brand that provides genuine medicines and stronger value to customers by reducing supply chain inefficiencies through technology.

They sell a wide range of items, including pharmaceutical and wellness products like medications, vitamins, medical equipment, and test kits, and also fast-moving consumer goods like toiletries, infant care products, soaps and detergents, and hand sanitizers. They’ve kept a laser-like emphasis on expanding their shop network.

Growth

According to the Technopak Report, the company has grown from operating 48 stores in Hyderabad at its inception to operating India’s second largest pharmacy retail network with over 2,000 stores spread across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal, and Maharashtra as of March 31, 2021.

As per the Technopak report, their share of the organised pharmacy retail market in Chennai, Bangalore, Hyderabad, and Kolkata for the financial year 2021 was approximately 30 30 percent, 29 percent, 30 percent, and 22 percent, respectively, due to their concentrate on expanding and gaining leadership in the main markets where they operate.

Stores

They have proceeded to diversify their store footprint in main markets where they operate with the number of retail outlets in Chennai increasing by over four-fold from 62 to 293 stores between March 31, 2010 and June 30, 2021.

The number of retail outlets in Bangalore increasing by three-fold from 110 to 331 stores and the number of shops in Hyderabad increasing by over two-fold from 141 to 309 stores.

The number of retail outlets in Kolkata increasing by over two-fold from 141 to 309 shops. According to the Technopak data, they ranked first in Chennai and Bangalore in regard of outlet count as of March 31, 2021, and second in Hyderabad and Kolkata.

Business Approch

They take a data analytics-driven cluster-based strategy to broadening their supply chain.

1. They first obtain increased shop density in a richly inhabited residential location within a target town before increasing their store network in the surrounding regions of that town, accompanied by growth into other neighbouring urban centres.
2. Their knowledge of the regional trends, market dynamics, and their capacity to facilitate store development with back-end infrastructure, including warehouses and distribution centres, all contribute to their cluster-based strategy to retail network expansion.

MedPlus IPO

MedPlus Health Services Limited, headquartered in Hyderabad has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 16,387.16 million on 16 August 2021.

The Offer includes INR 6,000 million value’s fresh equity shares and There is an offer for sell(OFS) of INR 10,387.16 million value equity shares by the promoters mentioned in the DRHP.

They got approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market on 22 November 2021.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
		31-Mar-21	31-Mar-20	31-Mar-19
Total Assets		1,565.66	1,348.70	958.71
Total Revenue		3,090.81	2,887.89	2,284.94
Profit After Tax		63.11	1.79	11.92

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	6.13	5.88	3
Financial Year 2020	0.21	0.20	2
Financial Year 2019	1.15	1.10	1
Weighted Average	3.33	3.19

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

The following are some of the basic parameters and their strengths that are used to calculate the Offer Price:

1. The second-largest pharmacy retailer in India.
2. Clients have a well-known brand and a value proposition.
3. Growth using a Distinct Cluster-based and Replicable Retail outlet Unit Expansion Strategy has a proven track record of performance.
4. The Omni-channel proposition is enhanced with a high-density supply chain.
5. Technology-driven processes and a lean pricing framework
6. A Board of Directors and Senior Management Team that is well-qualified, knowledgeable, and innovative.

MedPlus IPO Peer Comparison

There are no publicly traded company in our country with a range of products and services equivalent to theirs, or a scale of operations comparable to theirs.

MedPlus IPO Details

IPO Opening Date	13 December 2021
IPO Closing Date	15 December 2021
Issue Type	Book Building
Face Value	2 per  share
IPO Price	780 to 796 per equity share
Market Lot	18 Shares
Min Amount	14,328
Listing At	BSE, NSE
Issue Size	INR 16,387.16 Million
Fresh Issue	INR 6,000 Million
Offer for Sale	INR 10,387.16 Million

MedPlus IPO Date

MedPlus IPO opening date is 13 December 2021, and the closing date is 15 December 2021. The MedPlus  issue may list in 23 December 2021.

IPO Opening Date	13 December 2021
IPO Closing Date	15 December 2021
Basis of Allotment Date	20 December 2021
Initiation of Refunds	21 December 2021
Credit of Shares to Demat Account	22 December 2021
IPO Listing Date	23 December 2021

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly equivalent
Non Institutional Investor	15	Roughly equivalent
Retail	35	Minimum 1 lot based on availability

MedPlus IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of MedPlus IPO.

MedPlus IPO GMP

MedPlus IPO Grey Market Premium is 88.

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
22 December 2021	88	1200	200
21 December 2021	170	3200	400
20 December 2021	150	2300	300
19 December 2021	223	3200	400
18 December 2021	216	3900	450
17 December 2021	225	3100	400
16 December 2021	252	4300	500
15 December 2021	245	3600	400
14 December 2021	250	3200	300
13 December 2021	300	4900	550
12 December 2021	285	3400	350
11 December 2021	275	2400	300
10 December 2021	295	4800	450
09 December 2021	333	3500	350
08 December 2021	350	3800	350
07 December 2021	220

MedPlus IPO Review

If you are looking for answer to your question MedPlus IPO is good or bad?Here is the answer you can apply for decent listing gain as well as for long term. This industry is growing very fast & they are one of the first movers.

MedPlus IPO Risk

• The impact of COVID-19 on their business in the future is unknown and cannot be forecast.
• Changes in prescription medicine price and commercial terms may have a negative impact on their business.
• Their company, subsidiaries, promoters, and directors are all involved in ongoing legal procedures. Any negative decision in any of these processes might have a negative impact on their company.
• Privacy and security rules govern their use and sharing of personally sensitive information, especially personal health information.
• Their financial success may be harmed if we do not effectively manage inventory and forecast demand.
• They may be vulnerable to cyber-attacks and information technology system failures.

Other Threats

• They are exposed to the dangers that come with expanding into new markets.
• Employee misbehaviour or errors that are difficult to discover might cause them harm, and any such incidents could have a negative impact on their business.
• Negative news or other occurrences involving the Indian pharmaceutical sector may have a negative impact on their business.
• They rely on the use of prescription medications, and their brand name or generic drugs may have a detrimental effect on their sales and margins, causing them to lose money.
• They have engaged in related party transactions in the past and may do so again in the future.
• Under their financial agreements, their lenders have put some restrictive limitations on them.

Aim & Mission

They think that by using right business approach and knowledge, they will be able to accomplish the following:

• Increase brand awareness in the cities where they operate by implementing targeted marketing and advertising campaigns
• Expand their market share in the cities where they do business.
• As they expand their footprint in such clusters, replicate their development strategy in other underserved cities and villages.
• Cost savings will be realised as a result of the operating leverage gained in their supply chain and inventory administration.

They have a structured and rigorous shop opening process in place, as well as specialised operations and business development staff at the local, city, and state levels to evaluate and authorize new store openings.

Business Model

According to the Technopak Report, they are India’s first pharmacy store to offer an omni-channel platform. Since 2015, our consumers have had the option of visiting their retail locations or accessing their products online via their website and mobile application. They hope to accomplish the following with our omni-channel model:

• Increase the depth and breadth of their client base in each of their stores.
• Increase the importance of “convenience” as a key consumer value proposition.
• Retain their ecosystem’s clients.

Options to transact with Medplus

Customers can transaction with us in a variety of ways, such as

1. Making a purchase at one of their stores.
2. Making an order over the phone and receiving delivery of the items they ordered.
3. Making an online order for delivery of the items they have ordered.
4. “Click and Pick,” which entails making an order online and picking up their items from one of their locations.

In the fiscal year 2020, they began focusing more heavily on digital sales. Revenue from their digital sales channel has gradually risen over the previous two years, accounting for 8.98% and 6.99% of their overall revenue from operations in fiscal years 2021 and 2020, correspondingly.

MedPlus IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

MedPlus IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
13 December 2021	1	0.06	0.17	1.31	0.78	0.71
14 December 2021	2	0.09	0.51	2.70	1.77	1.49
15 December 2021	3	111.89	85.33	5.23	3.05	52.59

Promoters

• Gangadi Madhukar Reddy
• Agilemed Investments Private Limited
• Lone Furrow Investments Private Limited

Promoters’ Holding

Pre Issue Share Holding	96.52%
Post Issue Share Holding