MedPlus IPO: The healthtech startup raises Rs 418 crore from anchor investors ahead of its initial public offering (IPO)

New Delhi: MedPlus Health Services, a pharmacy retail chain, announced on Friday that it has raised Rs 418 crore from anchor investors ahead of its initial share sale, which opens for public subscription on Monday.

According to a circular posted on the BSE website, the company has allotted 52.51 lakh equity shares to anchor investors at Rs 796 each, for a total of Rs 417.98 crore.

Anchor investors include Abu Dhabi Investment Authority, BlackRock Global Funds, Fidelity, Nomura, Goldman Sachs, Morgan Stanley, HFFC Life Insurance Company, ICICI Prudential Life Insurance Company, and SBI Life Insurance Co Ltd, SBI Mutual Fund (MF), and Aditya Birla Sun Life MF.

The Rs 1,398-crore initial share sale includes a fresh issuance of equity shares worth Rs 600 crore, as well as an offer for sale (OFS) of up to equity shares worth Rs 798.30 crore by the promoter and existing shareholders.

The issue includes a reservation of Rs 5 crore in equity shares for the company’s employees, who will receive those shares at a Rs 78 per share discount to the final issue price.

The public subscription period for the issue, which has a price band of Rs 780-796 per share, will begin on December 13 and end on December 15.

The proceeds of the new issuance will be used to fund the working capital needs of the company’s subsidiary Optival.

Qualified institutional buyers (QIBs) will receive half of the issue size, non-institutional investors will receive 15%, and retail investors will receive 35%.

Investors can place bids for a minimum of 18 equity shares and multiples of that number.
Gangadi Madhukar Reddy, the company’s managing director and chief executive officer, founded MedPlus in 2006.

The Hyderabad-based pharmacy retailer sells a variety of products, including pharmaceutical and wellness items such as medicines, vitamins, medical devices, and test kits, as well as FMCG items such as toiletries, baby care products, soaps and detergents, and sanitizers.

Medplus was also the first pharmacy retailer in India to offer an omnichannel platform, and it is currently expanding its retail store network.

As of March 31, 2021, the company operates India’s second-largest pharmacy retail network of over 2,000 stores distributed across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal, and Maharashtra, having grown from operating 48 stores in Hyderabad at the start of the business to operating India’s second-largest pharmacy retail network of over 2,000 stores distributed across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka

The issue’s book running lead managers are Axis Capital, Credit Suisse Securities (India), Nomura Financial Advisory and Securities (India), and Edelweiss Financial Services.

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