Medplus Health will use the proceeds of the fresh issue for the working capital requirements of its subsidiary company Optival, as well as for general corporate purposes
MedPlus Health Services Ltd opened its initial public offering (IPO) for subscription today, 13 December. It aims to raise Rs 1,398.29 crore from this public offer, at the upper end of the price band of Rs 780-796 per share.
The IPO of the company has been subscribed 0.17 times till date. The portion reserved for retail investors has been subscribed 0.33 times as per IPOWatch.in. The portion reserved for employees has been booked 0.03 times and the non-institutional investor portion was booked 0.02 times. The MedPlus IPO can be subscribed till 15 December.
As per market experts, the shares of Medplus Health Services were available in the grey market at a premium of Rs 280 today. The IPO will consist of an offer for sale (OFS) of up to Rs 798 crore worth of shares as well a fresh issue worth Rs 600 crore.
Medplus Health will use the proceeds of the fresh issue for the working capital requirements of its subsidiary company Optival, as well as for general corporate purposes.
On 10 December, ahead of its initial offering, the company has raised Rs 418 crore from anchor investors such as BlackRock Global Funds, Fidelity, Abu Dhabi Investment Authority, Nomura, HDFC Life Insurance Company, Goldman Sachs, Morgan Stanley, , ICICI Prudential Life Insurance Company and SBI Life Insurance Co Ltd, SBI Mutual Fund (MF) and Aditya Birla Sun Life MF.
The Hyderabad-based pharmacy retailer has also set out equity shares worth Rs 5 crore for its employees. The employees will receive the reserved shares at a discount of Rs 78 per share on the final issue price.
Half of the issue size has been reserved for qualified institutional buyers (QIBs). The company has set out 15 percent of the issue for Non-Institutional Investors (NII) and 35 percent for retail investors.
Medplus Health was established in 2006 by Gangadi Madhukar Reddy. He is currently serving as the managing director and chief executive officer of the company.
The company offers a wide range of pharmaceutical and wellness products like – medicines, medical devices, vitamins and so on, apart from FMCG products such as home and personal care items.