Adar Poonawalla-backed Wellness Forever files for IPO to raise up to Rs 1,600 crore

SII chief executive officer Adar Poonawalla

Wellness Forever Medicare, backed by Serum Institute of India (SII) CEO Adar Poonawalla, expects to raise between Rs 1,500-Rs 1,600 crore through its initial public offering (IPO), per their Draft Red Herring Prospectus (DHRP) filed with regulatory authority SEBI.

The IPO of this omnichannel retail pharmacy chain, which is second only to that of Hyderabad-based MedPlus, who filed its DRHP in August, will consist of fresh equity share issues, which are worth Rs 400 crore, along with an offer for sale (OFS) to the tune of Rs 1.6 crore of equity.

Per the filings, out of the total proceeds, while Rs 70.20 crore will be utilised for funding capital expenditure establishing new outlets, and Rs 100 crore will go towards part or full repayment of borrowings. In addition, the proceeds will also be used for funding its working capital requirements worth Rs 121.90 crore, along with other general corporate objectives.

About Wellness Forever Medicare
The Mumbai-based brand, founded in 2008 by Ashraf Biran, Gulshan Bakhtiani, and Mohan Chavan is the leading wellness network in western India and also happens to be the third-largest chain in terms of the number of stores. Its revenue for March 31, 2021, grew to Rs 924.02 crore, from Rs 863.25 crore in the previous fiscal year.

Serving more than 6.7 million customers and employing more than 4,600 people across its presence in 23 cities and 234 stores, the chain is known for providing a self-browsing and distinctive shopping experience, providing approximately 91,500 pharmaceuticals and wellness products, with each store featuring 13,000 products spread FMCG products, nutraceuticals, medical instruments along with the standard prescription medicines.

While Biran and Bakhtiani are offering 7.20 lakh shares, Chavan is offering 1.20 lakh shares, in addition to 144.85 lakh shares offered by other shareholders. With IIFL Securities Limited, Ambit Private Limited, DAM Capital Advisors Limited, and HDFC Bank Limited leading the book-running to the issue, the brand aims to strengthen its roots in tier 2 and 3 Indian markets, particularly in the pharmacy e-commerce segment, a sector expected to grow at 45 percent CAGR.