Shares of Medplus Health stock closed over 40% higher after the pharmacy retailer made a decent market debut today. The stock closed 40.81% higher at Rs 1120.85 on BSE against IPO price of Rs 796. Market cap of the firm rose to Rs 13,372 crore on BSE and stood at Rs 13,375 crore on NSE. Total 11.99 lakh shares of the firm changed hands amounting to a turnover of Rs 129.73 crore on BSE.
On NSE, the share ended 40.70% higher at Rs 1,120.
Total 1.84 crore shares of the firm changed hands amounting to a turnover of Rs 2063 crore on NSE. The stock zoomed 43.70% intra day to Rs 1,143.90 on NSE .
On BSE, the share climbed 43.59% intra day to Rs 1143.10. Earlier, shares of Medplus Health listed at a premium of 30.65% at Rs 1,040 on NSE compared to the issue price of Rs 796.
The company offered its shares in a price band of Rs 780-796. On BSE, the stock listed at Rs 1015, 27.51% higher to the IPO price.
Post the decent listing day gains, should you hold the stock for long term?
Here’s what analysts said.
Yash Gupta, Equity Research Analyst at Angel One said,”We suggest short-term investors to book profit in Medplus Health Services as now the company is trading at EV/EBITDA of 37 times based on H1FY2022 which is in line with listed peers. Long term investors can wait for lower levels to buy, as Medplus is the second-largest pharmacy retailer in India and offers a good value proposition to its customer in terms of discount, a wide range of product and fast delivery. We believe that the company’s omnichannel platform will help to deliver strong growth in future. So long term investors can wait for lower levels to buy.”
Santosh Meena, Head of Research, Swastika Investmart said,” Long-term investors should hold the stock and it might turn into a wealth creator in the next 2-3 years. However, short-term investors are advised to keep a stop loss of Rs 875. MedPlus has an omnichannel platform and is the second-largest pharmacy retailer. We believe the growth opportunities from the industry will justify the company’s valuation in the long run, even if it appeared to be expensive at first glance.”
The IPO was held from December 13 to December 15. The share sale was subscribed 52.59 times on the final day of bidding.
Medplus raised Rs 1,398.30 crore through its public issue at the upper price band of Rs 796 per share. The offer received bids for 66.13 crore equity shares against an IPO size of 1.25 crore shares.
The portion allocated for retail investors was subscribed 5.24 times and that of non-institutional investors saw 85.33 times subscription. The employees quota was subscribed 3.05 times. Qualified institutional buyers (QIBs) applied for 111.90 times the portion set aside for them.
The firm raised a little over Rs 417.98 crore from 36 anchor investors on December 10. The company allotted 52,51,111 equity shares to anchor investors at Rs 796 apiece, taking the total transaction size to Rs 410.25 crore.
Lot size of the IPO was 18 shares for which one would have to spend Rs 14,328. A retail-individual investor could apply for up to 13 lots or 234 shares by spending Rs 1,86,264.The allotment of shares was finalised on December 20 , 2021.
