Table of Contents
- Medplus Health Service Limited Introduction
- What are the risk factors in Medplus IPO?
- What are the competitive strengths in Medplus IPO?
- What are the product offerings of Medplus Health Limited?
- How are the financials of Medplus Health Limited?
- Promoters of Medplus health Services limited?
- Objects Of Medplus IPO net proceeds
- Medplus IPO open & close date
- Medplus IPO allotment, refund & listing date
- Medplus IPO allotment status
- Medplus IPO GMP (Grey Market Price)
- Medplus IPO price band, RHP & details
- Medplus IPO valuation (Overpriced or not?)
- Medplus IPO good or bad? (review)
Medplus Health Service Limited Introduction
Medplus a Hyderabad-based company is an online plus offline pharmaceutical retail store chain, they are also the second-largest pharmacy retailer in India, in terms of revenue and number of stores. It is India’s second-largest pharmacy retailer with over 2000 stores across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal, and Maharashtra, as of March 31, 2021.
Medplus Health Limited is coming up with an IPO on 13th Dec 2021, The public offer of MedPlus Health comprises a fresh issue of equity shares aggregating up to Rs. 600 crores and an offer for sale of equity shares worth around Rs. 800 crores from existing shareholders.
What are the risk factors in Medplus IPO?
1. Company have outstanding legal proceedings which if materialize may adversely affect the company
2. Medplus Health Limited is highly dependent on third-party manufacturers for the manufacturing of inventories
3. Company’s promoters have pledged a part of their shares under various loans
4. Company has shown negative cash flows in the past three years, also may continue in future
5. Medplus has contingent liabilities which, if materialized, may adversely affect the business
6. Company IPO consists 798 Cr towards OFS which will directly benefit shareholders not the company
What are the competitive strengths in Medplus IPO?
1. Medplus Health is the second-largest pharmacy retailer in India, in terms of (i) revenue from operations for the financial year 2021, and (ii) the number of stores as of March 31, 2021
2. “MedPlus” brand is a well-established brand
3. Company has a great track record of expansion from 48 stores in 2006 to 2000 stores in 2021
4. Medplus is the first pharmacy retailer in India to offer an omnichannel platform
5. Company has a Well Qualified, Experienced and Entrepreneurial Board as well as Senior Management, Team
6. Company’s revenue is consistently growing moreover its profits are also growing
7. Medplus has also shown increasing margins in the past 3.5 years
What are the product offerings of Medplus Health Limited?
The company’s product mix primarily comprises branded pharmaceutical products, private label pharmaceutical products branded fast-moving consumer goods, and private label consumer goods, also the company has a pan India network of stores, company’s store details are as follows:
|State||Number of stores as of|
June 30, 2021
How are the financials of Medplus Health Limited?
- Medplus is showing consistent growth in revenues
- Profit is also growing, however in FY-20 due to Covid-19 Profit was impacted
|Financial Year Ended||Revenue (₹ Crores)||PAT (₹ Crores)||EPS (₹)|
|As of September 30, 2020||1,470.97||22.27||2.09|
|As of September 30, 2021||1,890.90||66.37||5.99|
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Promoters of Medplus health Services limited?
Gangadi Madhukar Reddy, Lone Furrow Investments Pvt Ltd, and Agilemed Investments Pvt Ltd are the promoters of the company.
Objects Of Medplus IPO net proceeds
Medplus Health IPO Size is Rs 1,398.3 Crores and also the details are below:
1) Offer for Sale (OFS) Rs 798.3 Crores: Under OFS, selling shareholders would sell their shares and the company would not get any money from this IPO proceeds.
2) Fresh issue of Rs 600 Crores: Fresh issue would be done towards the following purposes:
i) Funding working capital requirement of a subsidiary, Optival and
ii) General corporate purposes.
Medplus IPO open & close date
IPO open date is: 13th Dec 2021, as well as IPO close date, is: 15th Dec 2021
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Medplus IPO allotment, refund & listing date
The allotment date is: 20th Dec 2021
The refund date is: 21st Dec 2021
IPO listing date is: 23rd Dec 2021
Medplus IPO allotment status
Allotment can be checked through kcas.kfintech.com
Medplus IPO GMP (Grey Market Price)
IPO GMP is RS 210 as of 15th Dec 2021
Medplus IPO price band, RHP & details
|IPO date||13 Dec 2021 – 15 Dec 2021|
|Listing date||23 Dec 2021|
|Price range||780 – 796|
|Minimum order quantity||18|
Medplus IPO valuation (Overpriced or not?)
Calculating with its upper price band of Rs 796
Now, the EPS (earning per share) for FY21 is 5.71 so the P.E ratio (price to earnings ratio) comes at 796/5.71=139.40x
If we consider the last 3 years weighted average EPS of Rs 3.19 and the upper price band of Rs 796, P/E works out to be 250x.
Therefore, the company is asking P.E ranging between 139X to 250X which is overpriced
However, there are no listed peers in the stock exchange, so the comparison is not possible
Medplus IPO good or bad? (review)
Medplus is an online plus offline pharmaceutical store chain, they are also the second-largest pharmacy retailer in India, in terms of revenue and number of stores. Looking at its IPO price it looks overpriced but as there are no listed peers to the company comparison is not possible, however, the company has shown good profitability and margins over the past years, and everyone knows the pharma sector is in a boost due to the Covid-19 pandemic, after considering all these factors it is a good investment for the medium to long term, it will be more attractive if the price is at a discount. Talking about listing gains till now it is showing a High grey market price which indicates a good listing.
Yes, Employee Discount 78
QIB Shares Offered 50% of the net offer
Retail Shares Offered 35% of the net offer
NII (HNI) Shares Offered 15% of the net offer
Pre Issue Share Holding
Post Issue Share Holding
Steps to apply in Medplus Health IPO through Zerodha
Visit the Zerodha website and log in to Console.
Go to Portfolio and click the IPOs link.
Go to the ‘Medplus Health IPO’ row and click the ‘Bid’ button.
Enter your UPI ID, Quantity, and Price.
‘Submit’ IPO application form.
Visit the UPI App (net banking or BHIM) to approve the mandate.
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