MedPlus Health IPO opens today; check price band, GMP and other details

Issue size: The Rs 1,398 crore initial share sale includes fresh issuance of equity shares worth Rs 600 crore and an offer for sale (OFS) of equity shares aggregating up to Rs 798.30 crore by the promoter and existing shareholders. The company cut the OFS size to Rs 798.30 crore from Rs 1,038.71 crore.

The issue includes a reservation of equity shares worth Rs 5 crore for the company's employees who will receive those shares at a discount of Rs 78 per share to the final issue price.

Price band: The pharmacy firm has fixed a price band of Rs 780-796 apiece for the equity shares, proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

Lot size: Investors can bid for a minimum of 18 equity shares and in multiples thereof. At the upper end of the price band, one lot is worth Rs 14,328.

Grey market premium: According to IPO Watch data, the pharmacy company is trading at a premium of Rs 300 or 38 percent in the grey market, at the upper price band of the issue.

Fund utilisation: MedPlus will use the IPO proceeds to fund the working capital requirements of the company's subsidiary Optival.

Investor categories: Fifty percent of the issue size has been reserved for qualified institutional buyers (QIBs), 15 percent for non-institutional investors, and 35 percent for retail investors.

Issue managers: Axis Capital, Credit Suisse Securities (India), Nomura Financial Advisory and Securities (India) and Edelweiss Financial Services are the book running lead managers to the issue.

Company profile: Founded in 2006 by Gangadi Madhukar Reddy, who is the company's managing director and chief executive officer, the Hyderabad-based pharmacy retailer offers products ranging from pharmaceutical and wellness such as medicines, vitamins, medical devices and test kits, to FMCG products such as home and personal care products, including toiletries, baby care products, soaps and detergents and sanitisers. MedPlus has 2,000 stores across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal and Maharashtra.

Financials: MedPlus reported a profit of Rs 63.11 crore for FY21, up from just Rs 1.79 crore in FY20. Revenue during the same period increased to Rs 3,069.26 crore from Rs 2,870.6 crore.