The initial public offer (IPO) of pharmacy retail chain MedPlus Health Services has opened today. Shares in the IPO are available in a price band of Rs 780-796 per share. The issue through which the firm plans to collect Rs 1,398 crore will close on December 15.
The company has collected Rs 418 crore from anchor investors. It allotted 52.51 lakh equity shares to anchor investors at Rs 796 apiece, aggregating to Rs 417.98 crore.
Abu Dhabi Investment Authority, BlackRock Global Funds, Fidelity, Nomura, Goldman Sachs, Morgan Stanley, HFFC Life Insurance Company, ICICI Prudential Life Insurance Company and SBI Life Insurance Co Ltd, SBI Mutual Fund (MF) and Aditya Birla Sun Life MF are among the anchor investors.
Shares of the IPO will be allotted to eligible investors on December 20 and the stock is likely to be listed on December 23, 2021. Investors can bid for a minimum of 18 equity shares or one lot by spending Rs 14,328.
A retail individual investor can apply for up to 13 lots or 234 shares by spending Rs 1,86,264.
The grey market premium of the IPO is Rs 300 or 38 percent in the grey market.
The objects of the issue are funding working capital requirement of subsidiary, Optival; and general corporate purposes.
Half of the issue size has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and 35 per cent for retail investors.
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.
The IPO comprises fresh issue of equity shares worth Rs 600 crore and an offer for sale (OFS) of up to equity shares aggregating up to Rs 798.30 crore by the promoter and existing shareholders.
The company has reserved equity shares worth Rs 5 crore for its employees and will offer them at a discount of Rs 78 per share to the final issue price.
MedPlus was founded in 2006 by Gangadi Madhukar Reddy, who is the company’s managing director and chief executive officer.
The Hyderabad-based pharmacy retailer offers a wide range of products, including pharmaceutical and wellness products, such as medicines, vitamins, medical devices and test kits, and FMCG products like home and personal care items, including toiletries, baby care products, soaps and detergents and sanitisers.
The equity shares are proposed to be listed on BSE and NSE.
