f Medplus Health Services Limited IPO or MedPlus IPO has an issue size of Rs 1,398.3 crore which comprises Rs 600 crore of fresh issue and Rs 798.3 crore of an offer for sale. MedPlus is the second-largest pharmacy retailer in India both in terms of revenue and number of stores as of FY21. It is also the first pharmacy retailer in India to offer an omni-channel platform.

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Medplus Health Services Limited (“Medplus”)IPO Details:

Issue Opens Monday, 13th December, 2021
Issue Closes Wednesday, 15th December, 2021
Issue DetailsFresh Issue of Equity Shares upto ₹ 600 Cr
 + Offer for Sale of Equity Shares upto ₹ 798.30 Cr
Face Value₹ 2/-
Issue Size (₹ Cr)₹ 1,398.30 Cr
Bid Lot18 shares
Price Band₹ 780 – 796
QIB50% of the net offer
NIB15% of the net offer ( ₹ 208.99 Cr)
Retail35% of offer ( ~ 6,126,297 Shares,  ₹ 487.65 Cr)
Applications for 1x Retail ~ 3.4 Lac

Updates :

  • ANCHOR ISSUE: Medplus Health Services mobilized Rs 417.98 crore from 36 anchor investors.
  • Includes  global investors such as Abu Dhabi Investment Authority, Blackrock Global Funds, Nomura, Fidelity Investment Trust, Goldman Sachs, Morgan Stanley, Wasatch International Opportunities Fund, Carmignac Portfolio, and CI Asian Tiger Fund.
  • Domestic investors such as HDFC Trustee, Aditya Birla Sun Life, SBI Mutual Fund, Nippon Life, Kotak Mutual Fund, Motilal Oswal Mutual Fund, HDFC Life Insurance, ICICI Prudential Life Insurance, SBI Life Insurance and Edelweiss

C E Info Systems Limited (“MapmyIndia”) IPO Review | Video Presentation

About Medplus Health Services Limited (“Medplus”)

  • Medplus Health Services Limited (“Medplus”) was incorporated in 2006
  • Started from operating initial 48 stores in Hyderabad.
  • Medplus is the 2nd largest pharmacy retailer in India, in terms of revenue from operations or FY21 and number of stores as of March 31, 2021.
  • Medplus offers 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,detergents, sanitizers

Medplus Health Services Limited (“Medplus”)IPO: Financials

Particulars / (₹ In Cr)sept21(6m)Sept20(6m)2021(12)2020(12)2019(12)
Revenue from Operations1,879.921,462.563,069.272,870.602,272.74
Revenue Growth (%)28.54%6.92%26.31%            –
EBITDA as stated169.64106.56238.21150.96     131.35
EBITDA Margin (%)9.02%7.29%7.76%5.26%      5.78%
Net Profit66.3722.2763.111.79      11.92
Equity Share Capital6.440.190.450.19         0.19
Net worth800.98590.34730.55527.8     291.34
EPS – Basic  (₹)        1.33
NAV  (₹ )~71.6754.5865.7348.8      31.00
Post IPO Equity23.85
IPO Price796
EPS ( FY21 ann)11.13
PE( based on Fy21 ann)71.51
Market Cap9492
Market Cap / Sales (ann)2.52

Salient Points

  • Company operates online store MedPlusMart, lab testing centres MedPlus Pathlabs and surgical equipment distribution business RiteCure
  • IPO proceeds of the fresh issue to be utilized towards investment into the company’s material subsidiary, Optival ·        
  • MedPlus’s has put in place a integrated technology infrastructure, which they have developed in-house.
  • Company uses a data analytics-driven cluster-based approach with focus on
    • (i)create brand visibility in operating cities
    • (ii)increase market share in the operating cities,
    • (iii) replicate the growth model in adjacent under served cities generate cost efficiencies from operating leverage achieved in supply chain and inventory management


  • Increase in competition from e-commerce.
  • Inability to effectively implement the business and growth, expand the storage and distribution network.
  • One of company’s corporate Promoters had pledged CCPS held by it amounting to7.64% of the pre-Offer equity share capital of Company, which have since been converted into Pledged.
  • Cash flow from operations was negative in FY2020.
  • Company has issued a corporate guarantee to lenders on account of a loan of Rs 185 crore availed by Optival, for funding its working capital requirements. Operations are subject to extensive regulation governing the drug and dispensary markets •

C E Info Systems Limited (“MapmyIndia”) IPO: Assessment

  • Pharmacy retail market in India expected to grow at CAGR of 6.23%, by FY25.
  • Penetration of organized retail in pharmacy and wellness category was approximately 10% in FY21.
  • Expected to increase to 20% by FY25, implying a CAGR of 25%.
  • India’s Second Largest Pharmacy retailer •Established Brand and Value Proposition to Customers
  • Omni-channel Platform with a Hyper-local Delivery Mode
  • Successful Track Record of Expansion Using a Distinct Cluster-based and Replicable Store Unit Expansion Approach.
  • High Density Store Network Enhancing Omni-channel Proposition •Has a strong focus on scaling up  store network
  • Lean Cost Structure and Technology Driven Operations
  • Backing of PE funds & Investors. Warburg Pincus, PremjiInvest
  • 21% share in organized retail
  • Net Debt to Equity- 0
  • The TTM EPS on post-issue equity works out to Rs 9.07.
  • On the upper price band of Rs 796, P/E works out to 87.76.
  • On Annualized basis PE works ~71.5.
  • Post-issue EV/ TTM Sales of 2.71x
  • GMP last reported was about Rs. 250 +
  • No Listed Peers. Unlisted peers include Apollo Pharmacy, Wellness Forever, Tata 1mg, Netmeds etc.
  • Apollo Pharmacy has about double the stores but Medplus is at par on margins, while other Online retailers are mostly in loss.
  • I intend to apply in this IPO. May even retain if allotted.
  • IPO is likely to see good subscription.

Standard disclaimer:  I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2)  Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors.  I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or  leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.

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