Medplus Health Service Limited Company was founded in 2006 by Gangadi Madhukar Reddy, their Managing Director and Chief Executive Officer, with the vision to set up a trusted pharmacy retail brand that offers genuine medicines and delivers better value to the customer by reducing inefficiencies in the supply chain using technology.
Medplus Health are 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, according to the Technopak Report. They offer a wide range of products, including (i) pharmaceutical and wellness products, including medicines, vitamins, medical devices, and test kits, and (ii) fast-moving consumer goods, such as home and personal care products, including toiletries, baby care products, soaps and detergents, and sanitizers.
Medplus Health have maintained a strong focus on scaling up their store network, having grown from operating their initial 48 stores in Hyderabad at the conception of their business to operating 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, as of March 31, 2021, according to the Technopak Report.
Their number of stores has grown since the conception of their business and, as of June 30, 2021, they operated 520 stores in Karnataka, 458 stores in Tamil Nadu, 443 stores in Telangana, 274 stores in Andhra Pradesh, 201 stores in West Bengal, 186 stores in Maharashtra and 83 stores in Odisha.
Medplus Health have continued to expand their store footprint in key cities where they operate and, between March 31, 2010, and June 30, 2021, their number of stores in Chennai grew over four-fold from 62 to 293 stores, their number of stores in Bangalore grew three-fold from 110 to 331 stores, their number of stores in Hyderabad grew over two-fold from 141 to 309 stores, and their number of stores in Kolkata grew over eight-fold from 22 to 201 stores. In terms of the number of stores as of March 31, 2021, they ranked 1st in Chennai and Bangalore, and 2nd in Hyderabad and Kolkata, according to the Technopak report.
Medplus Health IPO Business Strategy
- Strengthen Their Market Position by Increasing Store Penetration in Existing Clusters and Developing New Clusters
- Further, Develop Their Omni-channel Platform with a Hyperlocal Delivery Model
- Increase Their Share of Private Labels and Enhance Their Stock Keeping Unit (“SKU”) Mix
- Enhance Revenue and Increase Customer Wallet Share Through Continued Investment in Technology Infrastructure and Expansion into Adjacent Healthcare Vertical
- Continue to Increase Operating Efficiency and Enhance Supply Chain Management to Drive Profitability
Competitive Strengths
- India’s Second Largest Pharmacy Retailer;
- Established Brand and Value Proposition to Customers;
- Successful Track Record of Expansion Using a Distinct Cluster-based and Replicable Store Unit Expansion Approach;
- High-Density Store Network Enhancing Omni-channel Proposition;
- Lean Cost Structure and Technology-Driven Operations; and
- Well Qualified, Experienced and Entrepreneurial Board and Senior Management Team
Company Promoters
- Gangadi MadhukaR Reddy,
- Lone Furrow Investments Private Limited
- Agilemed Investments Private Limited
Company Financials
| Particulars | For the year/period ended (₹ in Millions) | ||
|---|---|---|---|
| 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |
| Total Assets | 1565.66 | 1348.70 | 958.71 |
| Total Revenue | 3090.81 | 2887.89 | 2284.94 |
| Profit After Tax | 63.11 | 1.79 | 11.92 |
Object Of The Issue
- Funding working capital requirements of their Material Subsidiary
- General corporate purposes.
MedPlus IPO Risk
- The impact of COVID-19 on their business in the future is unknown and cannot be forecast.
- Changes in prescription medicine price and commercial terms may have a negative impact on their business.
- Their company, subsidiaries, promoters, and directors are all involved in ongoing legal procedures. Any negative decision in any of these processes might have a negative impact on their company.
- Privacy and security rules govern their use and sharing of personally sensitive information, especially personal health information.
- Their financial success may be harmed if we do not effectively manage inventory and forecast demand.
- They may be vulnerable to cyber-attacks and information technology system failures.
Other Threats
- They are exposed to the dangers that come with expanding into new markets.
- Employee misbehaviour or errors that are difficult to discover might cause them harm, and any such incidents could have a negative impact on their business.
- Negative news or other occurrences involving the Indian pharmaceutical sector may have a negative impact on their business.
- They rely on the use of prescription medications, and their brand name or generic drugs may have a detrimental effect on their sales and margins, causing them to lose money.
- They have engaged in related party transactions in the past and may do so again in the future.
- Under their financial agreements, their lenders have put some restrictive limitations on them.
MedPlus IPO – Details
| IPO Opening Date | 13 December 2021 |
| IPO Closing Date | 15 December 2021 |
| Issue Type | Book Built Issue IPO |
| Issue Size | ₹ 1398.3 Crore |
| Face Value | ₹2 per equity share |
| IPO Price | ₹780 To ₹796 Per Equity Share |
| Market Lot | 18 Shares (1 Lot) |
| Min Order | 18 Shares |
| Listing At | BSE, NSE |
| Register | K Fintech Private Limited |
| 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 |
MedPlus IPO – Date Schedule
| IPO Open Date | 13 December 2021 |
| IPO Close Date | 15 December 2021 |
| Basis of Allotment Date | 20 December 2021 |
| Initiation of Refunds | 21 December 2021 |
| Credit of Shares to Demat Account | 22 December 2021 |
| IPO Listing Date | 23 December 2021 |
MedPlus IPO – Lots Size & Price
| Application | Lots | Shares | Amount ( Cut-Off) |
| Minimum | 1 | 18 | 14,328 |
| Maximum | 13 | 234 | 1,86,264 |
Promoter Holding
| Pre Issue Share Holding | 43.16% |
| Post Issue Share Holding | 40.43% |
MedPlus IPO Prospectus
Company Contact Information
| MedPlus Health Services Limited 707, 7th Floor, 5-9-13, Taramandal Commercial Complex, Saifabad, Hyderabad 500 004, Telangana, India Phone: +91 040 6724 6724 Email: cs@medplusindia.com Website: https://www.medplusindia.com/ |
MedPlus IPO Registrar
| KFin Technologies Private Limited Selenium, Tower B, Plot No- 31 and 32 Financial District, Nanakramguda, Serilingampally, Hyderabad Rangareedi 500 032 Telangana, India Tel: +91 40 6716 2222/ 180034 54001 E-mail: medplus.ipo@kfintech.com Website: www.kfintech.com |
MedPlus IPO Lead Manager(s)
| 1. Credit Suisse Securities (India) Private Limited 2. Axis Capital Limited 3. Edelweiss Financial Services Limited 4. Nomura Financial Advisory and Securities (India) Private Limited |
MedPlus IPO FAQs
| When MedPlus IPO IPO will open? The MedPlus IPO IPO dates are 13 December 2021 To 15 December 2021. |
| What is the lot size of MedPlus IPO IPO? MedPlus IPO IPO lot size is 18 Shares Shares and total amount is ₹ 14,328 |
| How to apply for MedPlus IPO IPO? You can apply in MedPlus IPO IPO online using either UPI or ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO application is offered by brokers who don’t offer banking services. |
| When is MedPlus IPO IPO listing date? The MedPlus IPO IPO listing date is announced. The date of MedPlus IPO IPO listing is 23 December 2021. |
