Wellness Forever IPO

Wellness Forever Medicare Limited is India’s third biggest retail pharmacy and wellness network in terms of store count, with a leadership position in Western India in terms of overall sales according to Technopak. Wellness Forever IPO will hit the market in April 2022.

About Wellness Forever

Under the “Wellness Forever” brand, Wellness Forever Medicare Limited operates a vast omni-channel, hyperlocal retail network that serves as a one-stop solution for their clients’ wellness requirements, with most of their locations open 24 hours a day, seven days a week.

Wellness Forever launched its first pharmacy in 2008, and as of June 30, 2021, they have extended their retail presence to 236 locations in 23 cities in the Indian states of Maharashtra, Karnataka, and Goa, serving a registered customer base of 6.7 million people.

Technopak predicts that for fiscal years 2020 and 2021, they produced the top income per retail square foot in the Indian pharmaceutical retail business, which is a tribute to their performance.

Products

They want to provide a shopping experience that extends beyond merely acquiring medicines and basic essentials for their clients. They have a large selection of products, with over 91,500 pharmaceutical and wellness products.

Each of their stores has an average of 13,000 products, comprising fast-moving consumer goods (FMCG), fast-moving health goods (FMHG), nutraceuticals, and medical equipment, as well as over-the-counter and prescription pharmaceuticals.

Their income from non-pharmaceutical product sales were Rs 2,407.18 million, Rs 3,122.44 million, and Rs 4,087.62 million in fiscal years 2019, 2020, and 2021, respectively.

Business Model

Their omni-channel, hyperlocal digital retail platforms, which include their website, easy-to-use mobile app, and toll-free number, complement their brick-and-mortar shop network.

In comparison to a centralised distribution centre, they use our brick-and-mortar stores as a faster foundation for completing omni-channel orders, allowing them to deliver items to their customers within 2 to 6 hours of placing the order.

This allows their customers to purchase effortlessly around the clock and from the comfort of their own homes through their omni-channel platforms. It also enables them to create synergies between physical locations and omni-channel platforms.

Wellness Forever IPO

Wellness Forever medicare Limited, headquartered in Mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 1500 crores on 30 September 2021.

The offer includes 400 crores value fresh equity shares and there is an offer for sale (OFS) of 16,044,709 Equity Shares by the promoters mentioned in the DRHP. They are not looking for any pre-IPO placement in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
		31-Mar-21	31-Mar-20	31-Mar-19
Total Assets		608.75	476.60	382.30
Total Revenue		941.36	867.10	680.94
Profit After Tax		(34.85)	( 5.32)	(1.33)

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	(7.11)	(7.11)	3
Financial Year 2020	(1.16)	(1.16)	2
Financial Year 2019	(0.31)	(0.31)	1
Weighted Average	(3.99)	(3.99)

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 among the qualitative considerations and key strengths that go into determining the Offer Price:

• In India’s fast-growing pharmaceutical retail market, this is a one-of-a-kind retail platform.
• A proven track record of expanding store footprints.
• Increased consumer contact points with an omni-channel, hyper-local presence.
• The “Wellness Forever” brand is a valuable and well-known one.
• Infrastructure platform that is poised for growth and is supported by technology.
• A vibrant and experienced management team is in charge.

Wellness Forever IPO Peer Comparison

They think there are no publicly traded businesses in India that operate in a business similar to theirs. So peer comparison is not feasible for their firm.

Wellness Forever IPO Details

IPO Opening Date	April 2022
IPO Closing Date	April 2022
Issue Type	Book Building
Face Value	02 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Order Quantity	–
Listing At	BSE, NSE
Issue Size	1500 Crore
Fresh Issue	400 Crore
Offer for Sale	16,044,709 Equity Shares

Wellness Forever IPO Date

Wellness Forever IPO opening date is April 2022, and the closing date is April 2022. The Wellness Forever IPO issue may list in April 2022.

IPO Opening Date	April 2022
IPO Closing Date	April 2022
Basis of Allotment Date	April 2022
Initiation of Refunds	April 2022
Credit of Shares to Demat Account	April 2022
IPO Listing Date	April 2022

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	75	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	10	Minimum level of 1 lot, based on availability, for every shareholder.

Wellness Forever 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 Wellness Forever IPO.

Wellness Forever IPO GMP

Wellness Forever IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
April 2022
April 2022
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April 2022
April 2022
April 2022
April 2022
April 2022
April 2022
April 2022
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Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Wellness Forever IPO Review

Wellness Forever IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Wellness Forever IPO is good or bad.

Wellness Forever IPO Risk

• The impacts of the continuing coronavirus epidemic may have a substantial and negative impact on their company.
• Their expansion strategy could not work out, which could have a negative impact on their company.
• They are exposed to the risks that come with their leasing commitments in general.
• In fiscal years 2019, 2020, and 2021, they lost money.
• Their profit margins are affected by their product mix, retail channel, and other factors that influence the cost of the goods they sell.
• Any disruption in the operations of their distribution and fulfilment facilities, or a failure to optimise management of those operations, might have a negative impact on them.
• Changes in prescription medicine price and commercial terms may have a negative impact on their operations.

Other Threats

• The operational performance of franchisees and agents, over whom they have no direct influence, are likely to have a direct impact on their future financial results.
• Concerns about drug safety, as well as negative publicity around them, may have a negative impact on us.
• Their capacity to develop effective advertising, marketing, and promotional campaigns is critical to their success.
• They may be harmed if their information technology systems or mobile application are disrupted or fail.
• A cyber-security breach might have a negative impact on their business.
• They may suffer if they are unable to control losses caused by fraud.
• Any transactions with linked parties that are not conducted on an arm’s length basis may have a negative impact on their business.

Inventory management

Their IT-enabled distribution, fulfilment, and other logistics capabilities support our technology-focused business. They built and opened our “Zero Error Distribution Facility” in 2014, which is their main distribution centre with over 100,000 square feet.

Furthermore, their key information technology systems are completely integrated, contemporary, and smart, allowing them to handle huge volumes of products and deliver effective supply chain management that matches their business’s complexity.

To determine when to acquire and refill goods at their distribution centre, their inventory management system uses statistical methods and computations.

Stores

Their retail network consists of 144 locations, including both owned and franchised locations. During the last three fiscal years, they have added 116 additional stores to their network.

They began expanding via the franchise model in fiscal year 2020, and as of June 30, 2021, they had three franchise outlets.

Their franchise network allows them to capitalise on their brand’s success and expand their reach to new clients at a reduced cost of capital.

Furthermore, they think that expanding their franchise network will greatly improve their omni-channel retail fulfilment capabilities, with each new store functioning as an additional fulfilment hub for omni-channel orders.

Mission

They aspire to be India’s most reputable pharmacy and wellness shop chain.They think they are well positioned to benefit on India’s expanding digital health ecosystem by using their competitive strengths and technical advances to strengthen their leadership in their existing markets.

According to Technopak, India’s favourable demographic trends (including increasing life expectancy), growing levels of disposable income, increased levels of digitization, greater prevalence of chronic diseases, higher access to healthcare coverage, and enhanced general demand for pharmaceuticals and wellness offer attractive potentials for considerable growth.

Wellness Forever 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

Wellness Forever IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
April 2022	1
April 2022	2
April 2022	3

Management

Mr. Ashraf M. Biran, Mr. Gulshan Bakhtiani, and Mr. Mohan Chavan, their co-founders and directors, all have extensive expertise in the pharmaceutical and/or retail sectors.

Furthermore, each of their Key Managerial Personnel has a thorough understanding of their operations and has played a key role in implementing their growth objectives while maximising shareholder value. They are also investing in the development of talent and the growth of their management team.

Over the previous 24 months, they have made substantial investments in their management team by adding senior level management across multiple growing functions and expanding their back-end teams to support their development.

Promoters

• Ashraf Mohammed Biran
• Gulshan Haresh Bakhtiani
• Mohan Ganpat Chavan

Promoter’s Holding

Pre Issue Share Holding	48.81%
Post Issue Share Holding