MedPlus Health Services share price tops Rs 1,000 on listing, stock makes stellar debut over IPO price

MedPlus Health Services shares made a strong debut on stock exchanges on Thursday, 23 December 2021

MedPlus Health Services IPO, MedPlus Health Services listing
The initial public offering of pharmacy retail chain MedPlus Health Services was subscribed 52.59 times.

MedPlus Health Services shares made a strong debut on stock exchanges on Thursday, 23 December 2021. MedPlus Health Services stocks began trading at Rs 1,015 per share, up Rs 219 or 27.51 per cent from the IPO price of Rs 796 per share. MedPlus Health had a market capitalisation of Rs 12,109.53 crore on listing. The initial public offering of pharmacy retail chain MedPlus Health Services was subscribed 52.59 times. The Rs 1,398.3-crore IPO received bids for 66.13 crore shares against 1.25 crore shares on offer.

The IPO had a fresh issue of up to Rs 600 crore and an offer-for-sale of up to Rs 798.30 crore. MedPlus was founded in 2006 by Gangadi Madhukar Reddy, who is the company’s managing director and chief executive officer. MedPlus is the 2nd largest pharmacy retailer in India, in terms of revenue from operations for the financial year 2021, and number of stores as of March 31, 2021. It offers a wide range of products, including pharmaceutical and wellness products such as medicines, vitamins, medical devices and test kits. It also offers FMCG products including home and personal care products, including toiletries, baby care products, soaps and detergents, and sanitizers.

Analysts at Reliance Securities gave the IPO ‘subscribe’ rating as they believed the premium multiple will sustain led by strong business model and higher growth rates. “MedPlus would continue to sustain its cluster-based strategy with a strong focus on execution. It also plans to expand its hyper-local delivery stores to cater to even more people who can take advantage of the 2-hour delivery system,” analysts said.

MedPlus Health Services scale of operations, wholly-managed and operated supply chain and distribution infrastructure, strong and integrated technology backbone, and focus on maintaining cost efficient operations gives an advantage over its competitors, said analysts at HDFC Securities.

Axis Capital, Credit Suisse Securities (India), Edelweiss Financial Services and Nomura Financial Advisory and Securities (India) were the managers to the offer.

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