Medplus Health
Mainboard₹1,398 Cr issue
+27.51%
Listing gain over issue price
Issue size
₹1,398 Cr
1 lot at cut-off
₹14,328
Lot size
18shares
Open
13 Dec 2021
Close
15 Dec 2021
Allotment
20 Dec 2021
Listing
23 Dec 2021
Listing performance
Issue price
₹796
Listed at
₹1,015
Listing-day close
₹1,121.15
Latest price
₹595.15
Close on 23 Oct 2026
Listing gain
+27.51%
Return since issue
-25.23%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 13 Dec 2021 – 15 Dec 2021
- Listing date
- 23 Dec 2021
- Face value
- ₹2 per share
- Issue price
- ₹796 per share
- Lot size
- 18 shares
- Total issue size
- ₹1,398 Cr
- Market cap at offer price
- ₹9,497 Cr
- Promoter holding
- 43.16% → 40.43% pre-issue → post-issue
- ISIN
- INE804L01022
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Axis Capital Ltd.
- Registered office
- 707, 7th Floor, 5-9-13, Taramandal Commercial Complex, Saifabad, Telangana
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 52,51,111 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 18 shares per lot, in multiples, at ₹796
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 18 | ₹14,328 |
| Retail (max) | 13 | 234 | ₹1,86,264 |
| S-HNI (min) | 14 | 252 | ₹2,00,592 |
| S-HNI (max) | 69 | 1,242 | ₹9,88,632 |
| B-HNI (min) | 70 | 1,260 | ₹10,02,960 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
52,51,111
Anchor portion
₹418 Cr
at ₹796 per share
Valuation and performance
Valuation at offer price
₹796 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹9,497 Cr |
About Medplus Health
MedPlus Health Services Limited, incorporated on November 30, 2006, is a pharmacy retail company that was the first to offer an omni-channel platform in India. The company operates 2,326 stores across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal and Maharashtra as of September 30, 2021, and maintains an online presence through its website and mobile application. The company generates revenue from the sale of pharmaceutical and wellness products (medicines, vitamins, medical devices, test kits) and FMCG products (home and personal care items, toiletries, baby care products, soaps, detergents, sanitizers). For the financial year 2021, the company generated revenue from operations of ₹30,692.69 million with a net profit of ₹631.11 million. More than 75% of retail sales are attributed to branded pharmaceutical products.
Company Analysis
from RHPMedPlus Health Services Limited is the second largest pharmacy retailer in India by revenue and store count, offering pharmaceutical products, wellness items, and FMCG products through an omni-channel platform spanning physical stores and online channels.
MedPlus Health Services Limited, incorporated on November 30, 2006, is a pharmacy retail company that was the first to offer an omni-channel platform in India. The company operates 2,326 stores across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal and Maharashtra as of September 30, 2021, and maintains an online presence through its website and mobile application. The company generates revenue from the sale of pharmaceutical and wellness products (medicines, vitamins, medical devices, test kits) and FMCG products (home and personal care items, toiletries, baby care products, soaps, detergents, sanitizers). For the financial year 2021, the company generated revenue from operations of ₹30,692.69 million with a net profit of ₹631.11 million. More than 75% of retail sales are attributed to branded pharmaceutical products.
pharmacy retailpharmaceutical retailFMCG retailomni-channel retailhealthcare retail
Objects of the Issue
- Investment into our Material Subsidiary, Optival for funding working capital requirements of Optival ₹4,671.70 million p.16
- General corporate purposes ₹1,055.71 million p.16
- Funding for growth and expansion (to be determined from Fresh Issue proceeds) ₹6,000 million p.60
- Investment into our Material Subsidiary, Optival for funding working capital requirements of Optival ₹4,671.70 million p.106
- General corporate purposes ₹1,055.71 million p.106
- Not specified in this document section
Issue Structure
- Total Issue
- 17,573,342 Equity Shares aggregating to ₹13,982.95 million
- Fresh Issue
- 7,544,511 Equity Shares aggregating to ₹6,000 million
- Offer for Sale
- 10,028,831 Equity Shares aggregating to ₹7,982.95 million
- Price Band
- ₹780 to ₹796 per Equity Share
- Lot Size
- 18 Equity Shares
- Face Value
- ₹2 per Equity Share
Business Model
The company earns revenue through retail sale of pharmaceutical products (including branded and private label medicines, vitamins, medical devices, test kits) and FMCG products through its network of physical retail stores and omni-channel platform. The company operates through its own retail stores on leasehold basis and through revenue sharing agreements with hospitals. The company sources products from third-party manufacturers and vendors, including contract manufacturing for private label products.
Business Segments
Operates physical pharmacy retail stores and online channels for sale of pharmaceutical and wellness products (medicines, vitamins, medical devices, test kits) and FMCG products (home and personal care products)
Operates physical pharmacy stores for retail sale of prescription drugs, over-the-counter products, and wellness items
Operation of pharmacy retail stores under the MedPlus brand offering pharmaceutical products (prescription and OTC drugs), medicines, vitamins, medical devices, test kits, and FMCG products including toiletries, baby care, soaps, detergents, and sanitizers through physical stores and omnichannel platform
Operation of 2,326 pharmacy retail stores across 261 cities in seven states offering retail sale of branded and private label pharmaceutical products, over-the-counter drugs, surgical items, injectables, vaccines, FMCG products, and medical devices.
Online pharmacy platform offering 'click and pick' service where customers order online for store pickup, door-to-door delivery service in select cities (Hyderabad, Bangalore, Kolkata, Pune, Nagpur), website and mobile application sales. Online delivery services achieve delivery within two hours in select micro-markets.
Manufacturing and contract manufacturing of private label pharmaceutical products, wellness products, FMCG products including plastic products, optical frames, spectacles, liquid disinfectants, toiletries and cosmetics at three manufacturing facilities in Telangana.
Pathology diagnostic laboratory testing services and diagnostic centre operations providing medical tests and clinical examinations for healthcare customers.
Sale of medicines and general items through retail pharmacy locations
Wholesale pharmaceutical distribution to retailers and practitioners
Provision of pathological testing services
Revenue from sales of pharmaceutical and wellness products including medicines, vitamins, medical devices and test kits, as well as fast-moving consumer goods such as home and personal care products through store network and online sales channel
Revenue from pathological laboratory services and running of clinics
Revenue from display of advertisements, other business support income and other operating revenue
SWOT Analysis
Strengths
- • Second largest pharmacy retailer by revenue and store count in India(p.16)
- • First omni-channel pharmacy retailer in India with scaling retail network(p.16)
- • Strong revenue growth trajectory across multiple periods(p.17)
- • Improved profitability with significant growth in net profit(p.17)
- • Diversified product portfolio including branded and private label products(p.16)
- • Established pharmacy retail network with significant store base(p.47)
- • Strong revenue growth trajectory(p.47)
- • Exceptional operating leverage and profitability improvement(p.47)
- • Omni-channel capabilities with online presence(p.48)
- • Second largest pharmacy retailer by revenue and store count(p.152)
- • Established brand with 15+ year track record and market leadership in key cities(p.152)
- • Replicable cluster-based expansion model with strong unit economics(p.151)
- • First mover in omnichannel pharmacy retail with 2-hour delivery capability(p.151)
- • Technology-driven integrated supply chain and backward integration(p.151)
- • Strong mature store performance with attractive payback and ROCE(p.151)
- • Experienced management team with founder as doctor-entrepreneur(p.151)
- • India's second-largest organized pharmacy retail network with 2,326 stores across 7 states(p.157)
- • High store profitability with mature stores achieving 60%+ ROCE and median 3-year payback(p.154)
- • First pharmacy retailer in India to offer omni-channel platform with 2-hour delivery capability(p.154)
- • Cost-efficient procurement with 81.23% of branded pharma purchases sourced directly from manufacturers(p.155)
- • Proprietary, in-house developed technology systems with no material licensing costs(p.155)
- • Experienced leadership team with medical and business backgrounds(p.155)
- • Rapid new store maturation with over 60% achieving positive Store Level Operating EBITDA within 3 months(p.154)
- • Strong direct sourcing relationships with over 150 manufacturers enabling margin expansion and supply chain control(p.161)
- • Second largest pharmacy retailer in India by revenue and store count(p.285)
- • Market leadership in key cities with high store density(p.285)
- • Attractive store-level economics with high revenue per store(p.286)
- • First pharmacy retailer in India with omni-channel platform(p.286)
- • Rapid new store profitability and returns(p.286)
- • Backward-integrated, wholly-managed technology-driven supply chain(p.286)
- • Strong mature store economics and compounded same-store sales growth(p.286)
Weaknesses
- • Promoter pledge exposure on shares pending refinancing arrangements(p.34)
- • High working capital requirements and substantial indebtedness(p.36)
- • Significant inventory write-downs and obsolescence risks(p.37)
- • Geographic concentration of store base in four southern states(p.44)
- • Outstanding litigation and regulatory proceedings against Company and Subsidiaries(p.35)
- • High employee attrition rates impacting operational continuity(p.46)
- • Significant regulatory compliance violations with ongoing litigation(p.52)
- • Dependence on third-party transportation creating operational risk(p.48)
- • FEMA compliance failures and regulatory penalties(p.46)
- • Related party transactions with potential unfavorable terms(p.46)
- • Concentrated shareholding limiting minority shareholder influence(p.56)
- • High working capital intensity and substantial indebtedness(p.33)
- • Dependence on key cities for store concentration and revenue(p.150)
- • Lower store revenue per outlet compared to peers(p.151)
- • Inventory turnover declining over time(p.147)
- • High concentration of stores in four key cities (Hyderabad, Bangalore, Chennai, Kolkata account for approximately 52% of total stores)(p.154)
- • Concentrated warehouse network in specific states creating potential supply chain vulnerability(p.159)
- • Low production capacity utilization at manufacturing plants with Jeedimetla only 4.23% utilized in first half of FY2021(p.160)
- • Lease-based store model with no owned properties creating rental cost exposure(p.163)
- • Significant accounts receivable aging, with material amounts outstanding over 1-2 years(p.246)
- • Credit-impaired trade receivables indicate asset quality deterioration(p.246)
- • High leverage through lease obligations represents significant fixed cost burden(p.256)
- • Concentration of trade payables to related party suppliers(p.271)
- • Subsidiary debt burden with personal guarantees(p.305)
- • Multiple pending drug regulation compliance complaints(p.307)
- • Missing regulatory approvals for stores(p.316)
Opportunities
- • Pharmacy retail industry growth at 11% CAGR expected over next four years(p.16)
- • Modern pharmacy retail segment faster growth at 27% CAGR(p.16)
- • Emerging hyperlocal and omnichannel retail model as important growth driver(p.16)
- • Expansion into underserved geographic markets and new regions(p.44)
- • Demographic tailwind from aging Indian population driving pharmacy demand(p.44)
- • Increased demand for chronic therapy medicines with lifestyle diseases prevalence(p.44)
- • COVID-19 pandemic-driven increase in pharmaceutical demand(p.44)
- • Market consolidation opportunity in fragmented retail pharmacy industry(p.48)
- • Generic drug market growth providing margin expansion(p.44)
- • Organized pharmacy retail expected to grow 27% CAGR through 2025(p.152)
- • Low penetration of organized retail in Tier 2/3 cities(p.137)
- • Expanding omnichannel e-commerce expected to grow 44% CAGR(p.138)
- • Growing nutraceuticals and wellness market at 19-20% CAGR(p.138)
- • Expansion into adjacent under-served cities and states(p.152)
- • Low penetration of organized retail in pharmacy sector - only 7% in Tier 1 and 6% in Tier 2+ cities(p.156)
- • Rapid growth of e-commerce pharmacy market expected to grow at 42% CAGR from FY2021 to FY2025(p.154)
- • Plan to expand into adjacent healthcare verticals including diagnostics and pathology(p.157)
- • Increasing private label penetration enabling higher margin products(p.156)
- • Opportunity to establish new clusters in one to two new states annually(p.156)
- • Expansion of 2-hour delivery service to additional cities like Mumbai and Chennai(p.156)
- • Monetization opportunities from customer data analytics and insights(p.157)
- • Increasing automation in warehouses to improve efficiency and reduce costs(p.157)
- • Expansion through retail pharmacy retail segment showing strong growth trajectory(p.278)
- • Pathological testing services offering diversification from core retail pharmacy business(p.258)
- • Strategic investment in healthcare technology through Kalyani Meditimes acquisition(p.275)
- • Multiple subsidiary distribution channels enabling market penetration(p.269)
- • Expansion into new states and clusters with low penetration(p.288)
- • Growth of online and omni-channel sales(p.286)
- • Two-hour delivery capability expansion across cities(p.286)
- • Private label product expansion in pharmaceuticals and FMCG(p.288)
Threats
- • Changes to prescription drug pricing regulations and commercial terms(p.35)
- • Regulatory compliance burden and licensing requirements across states(p.42)
- • Supply chain disruptions and vendor dependence(p.42)
- • Intense competition from other retail pharmacies and market consolidation(p.44)
- • Adverse industry reputation from pharmaceutical sector incidents and scandals(p.44)
- • COVID-19 pandemic impact on business and operations remains uncertain(p.30)
- • Intense competition from larger, better-resourced players(p.47)
- • Rapid disruption from e-commerce and online pharmacy platforms(p.48)
- • Fluctuations in prescription drug utilization and generic drug pricing(p.44)
- • Regulatory changes affecting drug prescriptions and pharmacy operations(p.44)
- • Economic slowdown and inflation in Indian economy(p.52)
- • Seasonal fluctuations and unpredictable business variations(p.48)
- • Changes in Indian tax laws and stamp duty on securities(p.54)
- • Foreign investment restrictions and FDI policy limitations(p.47)
- • Intense competition from Apollo Pharmacy and e-pharmacy players(p.141)
- • Unprofitable e-commerce delivery model in industry(p.140)
- • Price regulation on essential medicines impacting margins(p.131)
- • COVID-19 pandemic impact on consumption and retail operations(p.128)
- • High customer acquisition costs and low profitability for online-only players(p.136)
- • Intense competition from established pharmacy retailers and online-only platforms(p.162)
- • Complex regulatory framework across multiple states affecting operations(p.164)
- • Price controls on scheduled pharmaceutical formulations under DPCO 2013(p.164)
- • Data protection regulations pending implementation creating compliance uncertainty(p.167)
- • Stringent licensing and registration requirements for retail pharmacies across states(p.164)
- • Environmental and waste management compliance requirements increasing operational costs(p.168)
- • Reliance on complex multi-tier supply chain with inter-company dependencies(p.271)
- • Regulatory exposure through income tax assessments and VAT disputes(p.268)
- • Exposure to FEMA compliance and regulatory penalties on share transfers(p.268)
- • Operating risk from dependency on centralized leadership and promoter concentration(p.251)
- • Highly competitive pharmacy retail industry with established players(p.289)
- • Competitors opening stores in same markets and offering lower prices(p.289)
- • Rising operating costs from inflation and lease escalation(p.288)
- • Variable state-level regulations and power tariff costs(p.288)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Gangadi Madhukar Reddy | Individual Promoter | 13.74% | — |
| Lone Furrow Investments Private Limited | Corporate Promoter | 15.42% | — |
| Agilemed Investments Private Limited | Corporate Promoter | 14.00% | — |
| Gangadi Madhukar Reddy | Individual Promoter/Managing Director and Chief Executive Officer | 13.74% | 12.87% |
| Lone Furrow Investments Private Limited | Corporate Promoter | 15.42% | 14.44% |
| Agilemed Investments Private Limited | Corporate Promoter | 14.00% | 13.12% |
| Lone Furrow Investments Private Limited | Promoter | 15.42% | 14.44% |
| Agilemed Investments Private Limited | Promoter | 14.00% | 13.12% |
| Gangadi Madhukar Reddy | Promoter | 13.74% | 12.87% |
| Gangadi Madhukar Reddy | Promoter | 13.74% | 12.87% |
| Gangadi Investments Private Limited | Promoter Group | — | — |
| Gangadi Madhukar Reddy | Individual Promoter | 40.43% | — |
| Agilemed Investments Private Limited | Corporate Promoter | — | — |
| Lone Furrow Investments Private Limited | Corporate Promoter | — | — |
| G. Madhukar Reddy | Promoter | 47.67% | — |
| Gangadi Investments Private Limited | Promoter Group | — | — |
| Gangadi Madhukar Reddy | Founder, Managing Director and Chief Executive Officer | — | — |
Leadership
Gangadi Madhukar Reddy · Managing Director and Chief Executive Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Medplus Health IPO FAQs
What is the lot size of Medplus Health IPO?
The minimum lot size of Medplus Health IPO is 18 shares. One lot costs ₹14,328 at the cut-off price.
When does Medplus Health IPO open and close?
Medplus Health IPO opened for subscription on 13 Dec 2021 and closed on 15 Dec 2021.
What is the listing date of Medplus Health IPO?
Medplus Health IPO listed on 23 Dec 2021.