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Pharmacy retail chain MedPlus get SEBI nod to launch IPO

MedPlus Health Services Ltd, the second-largest pharmacy retailer in India on Monday said it has received approval from the Securities & Exchange Board of India (SEBI) to launch its initial public offering (IPO) to raise up to Rs 1638.71 crore.

The Hyderabad-based pharmacy retail chain had filed the Draft Red Herring Prospectus (DRHP) with SEBI for IPO in August 2021.

The initial public offering (IPO) comprises fresh issuance of equity shares worth Rs 600 crore and an offer for sale (OFS) of up to equity shares aggregating up to Rs 1,038.71 crore by promoter and existing shareholders.

The OFS comprises equity shares aggregating up to Rs 450 crore by Lone Furrow Investments, equity share aggregating up to Rs 500 crore by PI Opportunities Fund – I and equity shares aggregating up to Rs 88.71 crore by other selling shareholders, consisting of certain entities and individual selling shareholders.

The company proposes to utilise the net proceeds towards funding the working capital requirements and general corporate purposes.

MedPlus was founded in 2006 by Madhukar Gangadi, 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.

The company is 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 revenue from operations stood at Rs 3069. crore in FY21.

Axis Capital, Credit Suisse Securities, Edelweiss and Nomura are the book running lead managers on the IPO.

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