Medplus Health makes strong market debut, share lists at 30% premium to issue price

Country's second largest pharmacy retailer Medplus Health Services made a strong market debut today. Shares of Medplus Health listed at a premium of 30.65% at Rs 1,040 on NSE compared to the issue price of Rs 796. The company offered its shares in a price band of Rs 780-796.

Market cap of the firm stood at Rs 12,407 crore. Total 39.65 lakh shares of the firm changed hands amounting to a turnover of Rs 412.36 crore on NSE.

On BSE, the stock listed at Rs 1015, 27.51% higher to the IPO price.

Market cap of the firm rose to Rs 12,109 crore. Total 2.35 lakh shares of the firm changed hands amounting to a turnover of Rs 23.88 crore on the BSE.

The IPO was held from December 13 to December 15. The share sale was subscribed 52.59 times on the final day of bidding.

Medplus raised Rs 1,398.30 crore through its public issue at the upper price band of Rs 796 per share. The offer received bids for 66.13 crore equity shares against an IPO size of 1.25 crore shares.

The portion allocated for retail investors was subscribed 5.24 times and that of non-institutional investors saw 85.33 times subscription. The employees quota was subscribed 3.05 times. Qualified institutional buyers (QIBs) applied for 111.90 times the portion set aside for them.

The firm raised a little over Rs 417.98 crore from 36 anchor investors on December 10. The company allotted 52,51,111 equity shares to anchor investors at Rs 796 apiece, taking the total transaction size to Rs 410.25 crore.

Lot size of the IPO was 18 shares for which one would have to spend Rs 14,328. A retail-individual investor could apply for up to 13 lots or 234 shares by spending Rs 1,86,264.The allotment of shares was finalised on December 20 , 2021.

KFintech Private Limited was the registrar to the IPO. Proceeds of the issue will be used for funding working capital requirement of subsidiary, Optival and general corporate purposes. Axis Capital, Credit Suisse Securities (India), Credit Suisse Securities (India) Private Limited, Nomura Financial Advisory were the book running lead managers to the IPO.

Medplus Health Services is India's second-largest pharmacy retailer in terms of the number of stores and revenue. The company offers pharmaceutical and wellness products i.e. medicines, vitamins, medical devices, test kits, and fast-moving consumer goods i.e. home and personal care products, baby care products, sanitizers, soaps, and detergents, etc