22 Dec , 2021 By : Kanchan Joshi
Pharmacy retail chain MedPlus Health Services Ltd's initial public offering (IPO) was subscribed 52.59 times on the last day of subscription that concluded on December 15. The Rs1,398.3-crore IPO received bids for 66,13,67,268 shares against 1,25,75,154 shares on offer.
The IPO had a fresh issue of up to Rs600 crore and an offer for sale (OFS) of up to Rs798.30 crore. The price range for the three-day initial share sale was Rs780-796 per share. MedPlus Health had mobilised Rs418 crore from anchor investors ahead of its public issue. Axis Capital, Credit Suisse Securities (India), Edelweiss Financial Services and Nomura Financial Advisory and Securities (India) were the managers to the offer.
As per the market observers, Medplus Health shares are trading at a premium (GMP) of Rs85 in grey market today, lower from yesterday's GMP of Rs160. The company's shares are expected to list on exchanges on Thursday, December 23, 2021.
Founded in 2006 by Gangadi Madhukar Reddy, who is the company's managing director and chief executive officer, MedPlus Health is the second largest pharmacy retailer in India. The Hyderabad-based pharmacy retailer offers a wide range of products that includes pharmaceutical and wellness products, and fast-moving consumer goods, such as home and personal care products.
Proceeds of the fresh issue will be used for funding working capital requirements of the company's subsidiary, Optival. As of June 31, 2021, the company has a strong pharmacy retail network of 2,165 stores across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal, and Maharashtra.
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