MedPlus Health Services eyes 1,639 cr IPO

MedPlus Health Services, Pharmacy retail chain has filed preliminary papers with SEBI to secure 1,639 crore through an initial share sale. The initial public offering (IPO) comprises fresh issuance of equity shares worth 600 crore. According to the draft red herring prospectus (DRHP), the company’s offer for sale (OFS) includes equity shares by promoter and existing shareholders, aggregating up to 1,038.71 crore.

The OFS comprises equity shares aggregating up to 450 crore by Lone Furrow Investments, equity shares of up to 500 crore by PI Opportunities Fund - I and Rs 88.71 crore of equity shares by other shareholders.

Proceeds of the fresh issue would be used for funding working capital requirements of the company's subsidiary, Optival.

Axis Capital, Credit Suisse Securities (India), Nomura Financial Advisory and Securities (India) and Edelweiss Financial Services have been named as merchant bankers to suggest the company on the IPO.

MedPlus was founded in 2006 by Gangadi Madhukar Reddy. From operating 48 stores in Hyderabad, MedPlus has become the country’s second-largest pharmacy retail network with 2,000 stores. It offers a wide range of products that includes 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.

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