India’s second-largest pharmacy retailer Medplus Health Services has decided to launch its initial public offering on December 13 and fixed a price band at Rs 780-796 per equity share.
The company is planning to mop up Rs 1,398.29 crore through its public issue that consists of fresh issuance of shares worth Rs 600 crore and an offer-for-sale of shares worth Rs 798.29 crore by selling shareholders.
The Investor PI Opportunities Fund - I is going to sell shares worth Rs 623 crore and SS Pharma LLC Rs 107 crore worth shares through offer-for-sale.
Shore Pharma LLC, Natco Pharma, Time Cap Pharma Labs, A Raghava Reddy, K Prakurthi, Navdeep Patyal, Sangeeta Raju, R Venkat Reddy, TK Kurien, Nithya Venkataramani, Atul Gupta, Manoj Jaiswal, Rahul Garg, Kollengode Ramanathan Lakshminarayana and Bijou Kurien are among others who are also going to offload shares through OFS.
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The offer includes a reservation of shares worth Rs 5 crore for the company’s employees. Eligible employees will get shares at a discount of Rs 78 apiece to the final offer price.
The fresh issue proceeds will get utilised by the company for working capital requirements of material subsidiary Optival.
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Investors can bid for a minimum of 18 equity shares and in multiples of 18 equity shares thereafter. Retail investors can invest a minimum of Rs 14,328 for one lot and their maximum investment would be Rs 1,86,264 for 13 lots.
Half of the offer has been reserved for qualified institutional buyers, 35 percent for retail investors, and the remaining 15 percent for non-institutional investors.
Medplus is the second largest pharmacy retailer in India, in terms of revenue from operations for FY21, and number of stores as of March 2021. It offers pharmaceutical and wellness products through its 2,000 stores across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal and Maharashtra.
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Promoters Gangadi Madhukar Reddy, Agilemed Investments and Lone Furrow Investments held 43.16 percent shareholding in the company.
Lavender Rose Investment is the largest shareholder with 24.58 percent stake in the company, followed by PI Opportunities Fund – I (22.07 percent), Lone Furrow Investments (15.42 percent), Agilemed Investments (14 percent), and Gangadi Madhukar Reddy (13.74 percent).
Medplus clocked profit of Rs 63.11 crore for the financial year 2021, increasing sharply from Rs 1.79 crore in FY20. Revenue during the same period increased to Rs 3,069.26 crore from Rs 2,870.6 crore.
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Profit in the six-month period ended September 2021 stood at Rs 66.36 crore, increasing from Rs 22.27 crore and revenue rose to Rs 1,879.92 crore from Rs 1,462.55 crore in the same period.
Axis Capital, Credit Suisse Securities (India), Edelweiss Financial Services, and Nomura Financial Advisory and Securities (India) are the book running lead managers to the issue.
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