Pharmacy retail chain MedPlus Health Services fixed a price band of ₹780-796 a share for its ₹1,398 crore initial share-sale on Tuesday. The initial public offering (IPO) will open for public subscription on December 13.
The three-day IPO will close on December 15. The bidding for anchor investors will open on December 10.
The initial share-sale comprises fresh issuance of equity shares worth ₹600 crore, and an offer for sale (OFS) of up to equity shares, aggregating up to ₹798.30 crore by promoter and existing shareholders.
The company has cut the OFS size to ₹798.30 crore from ₹1,038.71 crore.
The issue includes a reservation of equity shares worth ₹5 crore for the company’s employees, who will receive those shares at a discount of ₹78 per share to final issue price.
Proceeds of the fresh issue will be used for funding working capital requirements of the company’s subsidiary, Optival.
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Half of the issue size has been reserved for qualified institutional buyers (QIBs), 15 percent for non-institutional investors and 35 percent for retail investors.
Investors can bid for a minimum of 18 equity shares and in multiples thereof.
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 such as home and personal care products, including toiletries, baby care products, soaps and detergents and sanitizers.
MedPlus was also the first pharmacy retailer in India to offer an omni-channel platform and continues to scale up its retail store network.
The company maintains a strong focus on scaling up its store network, having grown from operating initial 48 stores in Hyderabad at the conception of the business, to operating India’s second largest pharmacy retail network of over 2,000 stores distributed across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal and Maharashtra, as of March 31, 2021.
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 equity shares are proposed to be listed on BSE and NSE.
(With inputs from Agencies)