MedPlus Is Going To Launch Its IPO, will raise Rs 1,639 crore

MedPlus is going to launch its IPO, which will raise Rs 1,639 crore from the market.

Pharmacy retail chain company MedPlus Health Services is going to launch its Initial Public Offering (IPO) soon.

Through this, the company is preparing to raise Rs 1,639 crore from the market and the company has also filed its draft papers with the capital market regulatory body SEBI.

According to the Draft Red Herring Prospectus (DRHP).

The company’s IPO includes the offer of equity shares of Rs 600 crore under OFS and the sale of equity shares of up to Rs 1,038.71 crore by existing shareholders along with promoters.

In the offer for sale, up to Rs 450 crore equity shares will be sold by the company Lone Furrow Investments.

Up to Rs 500 crore equity shares by PI Opportunities Fund-I, and up to Rs 88.71 crore equity shares by other shareholders. Including certain entities and individual shareholders.

Shares are reserved for the employees of the company in the sale offer of the IPO.

The proceeds from the fresh issue will be used to meet the working capital requirements of Optival, a subsidiary of the company.

MedPlus was founded in 2006 by Gangadi Madhukar Reddy, who is the Managing Director and Chief Executive Officer of the company.

The Hyderabad-based pharmacy retailer offers a wide range of pharmaceutical and wellness products such as medicines, vitamins, medical devices, and test kits.

It also manufactures FMCG products such as home and personal care products including toiletries, baby care products, soaps, detergents.

Medplus is the first pharmacy retailer in India to provide an omnichannel platform. At present, it is the second-largest pharmaceutical company in India.

The company has established over 2,000 stores in Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal, and Maharashtra from the initial 48 stores in Hyderabad till March 31, 2021.

Axis Capital, Credit Suisse Securities (India), Nomura Financial Advisory & Securities (India), and Edelweiss Financial Services have been appointed as merchant bankers to advise the company on the IPO. Equity shares will also be listed on BSE and NSE.