07 Dec , 2021 By : monika singh
NEW DELHI: The initial public offering (IPO) of the pharmacy retailer Medplus Health Services will hit the primary markets on Monday, December 13. The price band for the initial stake sale has been fixed at Rs 780-796 per share.
Hyderabad-based MedPlus Health Services, the second-largest pharmacy retailer in India, is eyeing to mop up Rs 1,398.29 crore via the primary route.
The IPO consists of the issuance of fresh equity shares worth Rs 600 crore while promoters and existing shareholders will offload equity shares worth Rs 798.29 via offer-for-sale (OFS).
Investors can bid for a minimum of 18 shares and then in multiples thereof. The issue is open for subscription till December 15, Wednesday.
The company offers a wide range of products, including pharmaceutical and wellness products, such as medicines, vitamins, medical devices and test kits, and FMCG products like home and personal care products.
Proceeds of the fresh issue will be used for funding the working capital requirements of the company's subsidiary, Optival.
MedPlus was founded in 2006 by Gangadi Madhukar Reddy, who is the company's managing director and chief executive officer.
The company maintains a strong focus on scaling up its store network to over 2,000 stores distributed across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal and Maharashtra, as of March 31, 2021.
The company has reserved equity shares worth Rs 5 crore for its eligible shareholders, who will be given a discount of Rs 78 per share in the bidding process.
Fifty per cent of the net issue is reserved for qualified institutional buyers (QIBs), whereas non-institutional buyers will have 15 per cent shares allocated for them. The retail portion has been fixed at 35 per cent of the offer.
Axis Capital, Credit Suisse Securities (India), Edelweiss Financial Services and Nomura Financial Advisory and Securities (India) have been appointed to manage the issue. KFin Technologies has been appointed as the registrar to the issue.
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