Mega listing of Medplus Health, IPO opened with a gain of 34 percent on stock exchanges
Medplus Health IPO: Pharmacy retail chain Medplus Health Services Limited’s IPO (Medplus Health Services IPO) has had a great listing on the Stock Exchanges. The share of Medplus Health was listed at Rs 1062 with a jump of about 34 percent and immediately went to Rs 1119. At present the stock is trading around Rs 1100. The company had fixed the price band of Rs 780-796 IPO.
Medplus Health IPO has raised Rs 1,398 crore through IPO. The IPO was open from 13 to 15 December. And the IPO was oversubscribed 53 times. This IPO includes an offer for sale (OFS) for new shares of Rs 600 crore and shares of Rs 798 crore of promoter and existing shareholders. The proceeds from the new issue will be used to meet the working capital requirements of the company’s subsidiary optical.
second largest company
Medplus was founded by Gangadi Madhukar Reddy in the year 2006. He is the Managing Director and Chief Executive Officer of the company. MedPlus is India’s second largest pharmacy retailer by revenue from operations in FY 2021 and number of stores as of March 2021.
It sells a wide range of products including pharmaceutical and wellness products and home and personal care products such as FMCG goods. Promoters Gangadi Madhukar Reddy, AgileMed Investments and Lone Furo Investments hold 43.16 per cent stake in the company.
growth strategy
Reddy had recently said that the company’s growth depends on its sales and the number of stores it adds every year. He had said that despite Kovid, we added 350 stores last year and this year in the second wave of Kovid, despite two months of lockdown, we added 350 stores in the first half, which means we will add 700 new stores this year. He added that the retail chain is also focusing on increasing sales from private label goods.
Company’s profit increased
MedPlus reported a profit of Rs 63.11 crore in FY21, while it was just Rs 1.79 crore in FY20. The company’s income has increased from Rs 2,870.6 crore to Rs 3,069.26 crore during this period.
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