MedPlus Health Services files papers for Rs 1,639 cr IPO

Pharmacy retail chain MedPlus Health Services has filed preliminary papers with SEBI to raise Rs 1,639 crore through an initial share sale. The initial public offering (IPO) comprises fresh issuance of equity shares worth Rs 600 crore. According to the draft red herring prospectus (DRHP), the company’s offer for sale (OFS) comprises equity shares by promoter and existing shareholders, aggregating up to Rs 1,038.71 crore.

The OFS comprises equity shares aggregating up to Rs 450 crore by Lone Furrow Investments, equity shares of up to Rs 500 crore by PI Opportunities Fund - I and Rs 88.71 crore of equity shares by other shareholders.

Proceeds of the fresh issue will be used for funding working capital requirements of the company's subsidiary, Optival.

Axis Capital, Credit Suisse Securities (India), Nomura Financial Advisory and Securities (India) and Edelweiss Financial Services have been appointed as merchant bankers to advise the company on the IPO.

The company was founded in 2006 by Gangadi Madhukar Reddy. From operating 48 stores in Hyderabad, MedPlus has become the country’s second-largest pharmacy retail network with 2,000 stores. It offers a wide range of products including pharmaceutical and wellness products such as medicines, vitamins, medical devices and test kits, and FMCG products such as home and personal care products, including toiletries, baby care products, soaps and detergents and sanitisers.

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