|IPO Note||Medplus Health Services Ltd|
|Rs 780 – Rs 796 per Equity share||Recommendation: Subscribe|
Medplus Health Services Ltd IPO Company Profile: –
Medplus Health services is one of the largest Omni-channel retail pharmacy player in India, it has 2100 retail stores across Tamil Nadu, West Bengal, Odisha, Andhra Pradesh, Telangana, Karnataka and Maharashtra. Company has an e-commerce portal “Medplus Mart” where customer can order online and can get delivery within 2 hours. Company also deals in wellness products like medical devices, baby products, vitamins, test kits etc. As per technopak Report they offer the highest discount to their customer and offers genuine products to their customer. Company has also started “click and Pick” service where customer can pick their medicine from their preferred store at their preferred time. As on 30th September 2021 company has 18 warehouses across India.
Medplus Health Services Ltd IPO Details –
|Objects of the issue|| · Investment in subsidiary, Optival for its working capital requirement
· General Corporate Purpose.
|Issue Size||Total issue Size -Rs. 1398.30 Cr.
Offer for Sale – Rs. 798.30 Cr.
Fresh Issue – Rs. 600 Cr.
|Face value||Rs.2.00 Per Equity Share|
|Issue Price||Rs. 780 – Rs. 796|
|Bid Lot||18 shares|
|Listing at||BSE, NSE|
|Issue Opens:||13thDec, 2021 – 15th Dec, 2021|
|QIB||50% of Net Issue Offer|
|Retail||35% of Net Issue Offer|
|NIB||15% of Net Issue Offer|
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Check Medplus Health Services Ltd IPO Allotment Status
Go Medplus Health Services Ltd IPO allotment status would be available soon after the IPO closure date. Usually the allotment comes within a week from the closing date which in this IPO yet to be announced.
One can check the allotment on the given below link with PAN number or Application number or DP Client Id. All you need to do is to follow these steps:-
Medplus Health Services Ltd IPO Financial Performance:
Medplus Health Services Ltd IPO Shareholding Pattern:
|Shareholding Pattern||Pre- Issue||Post Issue|
|Promoters & Promoter Group||43.16%||40.43%|
Source: RHP, EWL Research
Medplus Health Services Ltd IPO Strengths:
Company has been able to build strong brand presence among its customer, as customer gets the surety of getting genuine product from this channel.
They are the second largest pharmacy retailer in the country but still has large market share to grab as there is transition towards modern formats like online and tele ordering.
Company has been constantly innovating in their business model as per the preference of their customer from brick and mortar to online to click and pick and now have also started taking order on phone.
Company is showing very strong financial performance as there first half FY22 profits are higher than the overall profit of FY21.
Medplus Health Services Ltd IPO Key Highlights:
Revenue increased at 16.31% CAGR from FY19 to FY21, EBITDA Margin has improved from 5.78% to 7.76%.
PAT has grown at CAGR of 130% from ₹ 11.92 crore in FY19 profit has grown to ₹63.11 crore in FY21.
In the first half of FY22 company has reported revenue of ₹ 1746.49 crore and a Profit of ₹ 66.36 crore which is higher than the full year profit of FY21.
In FY21 company has generated cash flow of ₹ 2.89 crore and negative free cash flow of ₹ 51.36 crore, due to the purchase of land and other fixed assets.
In FY 2021, its market share of the organized pharmacy on revenue basis in Chennai, Bangalore, Hyderabad, and Kolkata was at 30%, 29%, 30%, and 22% respectively.
Medplus Health Services Ltd IPO Risk Factors:
Many deep pocket players like Tata, Reliance are entering this space through acquisition, so company may find it difficult to gain market share.
In e-commerce segment it is difficult to cater to acute segment which is more profitable and less price sensitive.
Medplus Health Services Ltd IPO Outlook:
Medplus Health Service Limited is the second largest retail pharmacy in India with a market share of 21% in brick and Mortar organized segment, they not only deal in medicine but also in wellness and FMCG products. Company has also developed e-commerce portals such as Medplus Mart, Medplus lens and Medplus Lens. Customer are now much more inclined towards branded Pharmacy as there they get genuine products and much better discounts. Growth for e-pharmacy Company long way to go as Indian Pharmacy sector is still control by unorganized players and Medplus is constantly gaining market share and improving their margin and profits. At the IPO price of ₹796 company will trade at P/E of 132x which is very high but seeing the growth ahead we are recommending SUBSCRIBE to this IPO.
Medplus Health Services Ltd IPO FAQ
Ans. Medplus Health Services Ltd IPO will comprise fresh share issue and new offer share issue. The company aims to go public to accelerate its growth and expansion plan.
Ans. The company will open for subscription on 13 December 2021.
Ans. The minimum lot size that investors can subscribe to is 18 shares.
Ans. The Medplus Health Services Ltd IPO listing date is 23 December 2021.
Ans. The minimum lot size for this upcoming IPO is 18 shares.
Ans. KFintech Private Limited will be the registrar for this upcoming IPO.
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