Medplus Health Services IPO

Medplus Health Services Ltd.

₹14,040 /18 sharesMinimum Investment

Medplus Health Services IPO Details

Bidding DatesMin. InvestmentLot SizePrice Range
13 Dec ‘21 - 15 Dec ‘21₹14,04018₹780 - ₹796
Issue SizeIPO Doc
1398.30Cr
RHP PDF

Subscription Status As on 15 Dec '21, 5:00 PM

  • Retail Individual Investor
    5.24x
  • Non-Institutional Investor
    85.33x
  • Qualified Institutional Buyers
    111.90x
  • Employees
    3.05x

About Medplus Health Services

Medplus Health Services is the second-largest pharmacy retailer in India, in terms of revenue from operations for the financial year 2021, and the number of stores as of March 31, 2021. It offers a wide range of products including medicines, vitamins, medical devices, and test kits, and fast-moving consumer goods, such as home and personal care products, including toiletries, baby care products, soaps and detergents, and sanitisers.;
Parent Organisation
Medplus Health Services Ltd.
Founded
2006
Managing Director
Gangadi Madhukar Reddy

Strengths & Risks

  • Medplus is India’s second-largest pharmacy retailer with around 2000+ stores.
  • It has an operating history of 15+ years and has positioned to stand for genuine and good quality pharmaceutical products that are offered at affordable prices.
  • Successful track record of expansion using a distinct cluster-based and replicable store unit expansion approach.
  • High-density store network enhancing omnichannel proposition.
  • Lean cost structure and technology-driven operations.
  • One of the company’s promoters, Lone Furrow Investments Private Limited, has pledged a portion of its shareholding with certain lenders under various loan and security agreements.
  • The company’s insurance coverage may not be adequate to protect it against all potential losses to which it may be subject to.
  • There have been instances of negative cash flows in the last three financial years.
  • The lenders have imposed certain restrictive conditions on the company under its financing arrangements.
  • Sudden changes in prescription drug pricing and commercial terms.
  • The cumulative cost of the stores operated by Medplus across India may not be indicative of the market capitalization of the company.
  • Its operations are subject to high working capital requirements and have incurred substantial indebtedness.
  • Failure to properly manage inventories and anticipate demand.
  • Failure to meet customer expectations, needs, and requirements.
  • Inability to manage information technology systems impairment and cyber-attacks.
  • The use and disclosure of personally identifiable information, including personal health information, is subject to privacy and security regulations.
  • Risks associated with expansion into new markets.
  • Dependence on third-party manufacturers for the supply of its products.

Financials

*All values are in Rs. Cr
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