MedPlus Health Services Limited

About the company

MedPlus Healthcare Services is the second largest pharmacy retailer in India, after Apollo Pharmacy. It was founded in 2006 by Gangadi Madhukar Reddy, a medical doctor and an MBA from Wharton School, who set up stores initially in Hyderabad. The company has transformed into an omni-channel retailer. Its customers can buy medicines from its stores, website and mobile app. The company’s revenue has gone up steadily and it is a profitable company. Medplus is now all set to launch its ₹1,398 crore IPO on December 13. **All about the IPO** While studying in Wharton School of Business, Dr Madhukar Gangadi, the founder and CEO of Medplus, came across a startling World Health Organisation report. This report claimed that a large amount of Indian medicines may be [ **spurious**](https://economictimes.indiatimes.com/starting-up/tried-tested-and-moved/articleshow/1925836.cms) . Spurred by this report and concerned about the ramifications this might have on the health of the Indian consumer, Madhukar opened Medplus’ first store in Hyderabad in 2006. Since then, Medplus has managed to expand its footprints in several states in India. Today, it is the second largest pharmacy retailer in India in terms of revenue from operations in FY21. **Business highlights** * Has an omni-channel model and sells medicines through its network of over 2,000 stores, website and mobile app.  * Operates pharmacy retail stores in Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal and Maharashtra  * Online sales now account for 9% of the total revenues. **Financials** Revenue: 16.2%; Net Profit: 129.1% (FY19-21 CAGR) **** **Strengths** * Well-established brand with 15 years of experience * With an omni-channel model, it is well equipped to compete with fast growing online pharmacies such as PharmEasy.  * Delivers their customers’ online purchases within two hours in select cities * Over 75% of its new stores have achieved profitability at EBITDA level in first six months * Has high average revenue per store of about ₹1.6 crores, compared to industry average of around ₹23 lakhs. **Risks** * Significant portion (75%) of the revenue comes from branded products, whose manufacturing is tightly regulated * Changes in prescription drug pricing and commercial terms could affect business performance * Failure to manage inventories and anticipate demand **Good to know** The organised retailers in India’s pharmacy and wellness space are expected to grow at a CAGR of 25% between 2020 and 2025 to $36 billion. Being the second largest and an omni-channel player, Medplus is well-positioned to take advantage of this growth. Also, the penetration of the organised pharmacy retail in India is at 11%. This leaves further room for expansion for organised players in this space.

Financial performance (₹ Cr)

IPO Roadmap / Timeline

1. IPO Opens

   Completed
   13 Dec 2021

   Bidding starts for all investor categories

2. IPO Closes

   Completed
   15 Dec 2021

   Last day to place your bid

3. Basis of Allotment

   Completed
   15 Dec 2021

   Share allotment finalised

4. Refund Initiation

   Completed
   21 Dec 2021

   Refunds credited for non-allottees

5. Credit to Demat

   Completed
   20 Dec 2021

   Allotted shares credited to demat account

6. Listing on Exchange

   Completed
   23 Dec 2021

   Shares list on NSE / BSE

Post-close dates are indicative as per SEBI T+3 listing framework and may change per registrar updates.