Medplus Health Services Ltd. (“Medplus” or the “Company”), the second largest pharmacy retailer in India, in terms of (i) revenue from operations for the financial year 2021, and (ii) number of stores as of March 31, 2021, filed its DRHP with SEBI.
Medplus was founded in 2006 by Gangadi Madhukar Reddy, the MD and CEO, with the vision to set up a trusted pharmacy retail brand that offers genuine medicines and delivers better value to the customer by reducing inefficiencies in the supply chain using technology. Medplus was also the first pharmacy retailer in India to offer an omni-channel platform and continues to scale up its retail store network. The Company maintains a strong focus on scaling up its store network, having grown from operating initial 48 stores in Hyderabad at the conception of the business to operating India’s second largest pharmacy retail network of over 2,000 stores distributed across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal and Maharashtra, as of March 31, 2021.
The Initial Public Offer (IPO) consists of equity shares of face value of ₹2 each of Medplus Health Services Limited aggregating up to ₹16,387.16 million (the “Offer”). The offer comprises fresh issue aggregating up to ₹6,000 million (the “Fresh Issue”) and an offer for sale of up to ₹10,387.16 million (the “Offer for Sale”). The Offer for Sale comprises of equity shares aggregating up to ₹4,500 million by Lone Furrow Investments Private Limited (“Promoter Selling Shareholder”), equity share aggregating up to ₹5,000 million by PI Opportunities Fund – I (“Investor Selling Shareholder”), and equity shares aggregating up to ₹887.16 million by other selling shareholders, consisting of certain entities and individual selling shareholders.
The offer also includes a reservation for subscription by eligible employees (“Employee Reservation Portion”).
The Company proposes to utilise the Net Proceeds towards funding the working capital requirements of its Subsidiary, Optival; and general corporate purposes.
The Book Running Lead Managers to the offer are Axis Capital Limited, Credit Suisse Securities (India) Private Limited, Edelweiss Financial Services Limited and Nomura Financial Advisory and Securities (India) Private Limited.
The equity shares are proposed to be listed on BSE and NSE.
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