The public issue of equity shares of MedPlus Health Services Limited will open for subscription on December 13, 2021 and closes on December 15, 2021. It is expected to list on the stock exchanges on December 23, 2021. What does the company do? Why is the company going public? Who are its key competitors? Its key strengths, and lot more. Here’s everything that you want to know about the company to analyse the IPO.

Company Profile

Established in 2006, the Company is the 2nd largest pharmacy retailer in India, in terms of Revenue from operations and number of stores, as of 31-Mar-2021. It offers a wide range of products, including (i) pharmaceutical and wellness products, including medicines, vitamins, medical devices, and test kits, and (ii) fast-moving consumer goods, such as home and personal care products, including toiletries, baby care products, soaps and detergents, and sanitizers.

The Company is the first pharmacy retailer in India to offer an omni-channel platform. Its customers could either visit it stores or access it offerings online, through its website and mobile application. Its customers have multiple options to transact with the brand, including (a) purchasing products at one of our stores, or (b) placing an order through a telephone call to receive delivery of their purchased products, or (c) placing an order online to receive delivery of their purchased products, or (d) "Click and Pick", by placing an order online and picking up their purchased products from one of its stores.

Its entire business value chain, from sourcing of products, to warehousing, to distribution to its stores, to store operations and interfacing with customers, and to last mile delivery, is supported by its integrated technology infrastructure, which it has developed in-house. Its operations are supported by the technology-driven supply chain and distribution infrastructure, organized in a hub-and-spoke model, which it believes provides them with a strong foundation and significant leverage to continue to scale their business. The Company employs a data analytics driven cluster-based approach to its store network expansion, whereby it first achieve high store density in a densely populated residential area within a target city before expanding its store network in the surrounding areas within that city, followed by expansion into other adjacent cities.

The Company operates over 2,000 stores distributed across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal, and Maharashtra, as of 31-Mar-2021. It has a primary warehouse, in each of Bangalore, Chennai, Hyderabad, Vijayawada, Kolkata, Pune, Bhubaneshwar, Mumbai and Nagpur.

Who are the Promoters of the Company?

Gangadi Madhukar Reddy, Lone Furrow Investments Pvt. Ltd., and Agilemed Investments Pvt. Ltd.

Positives about the Company

• India’s Second Largest Pharmacy Retailer
• Established Brand and Value Proposition to Customers
• Successful Track Record of Expansion Using a Distinct Cluster-based and Replicable Store Unit Expansion Approach
• High Density Store Network Enhancing Omni-channel Proposition
• Lean Cost Structure and Technology Driven Operations
• Well Qualified, Experienced and Entrepreneurial Board and Senior Management Team.

Who are its key competitors?

There are no listed peers in India

Why is the Company going public?

Given below are the objectives of the Company –

The Company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:

• Investment into its Material Subsidiary, Optival for funding working capital requirements of Optival.
• General corporate purposes

The Offer comprises a Fresh Issue by the company and an Offer for Sale by the selling shareholders. The company will not receive any proceeds from the Offer for Sale.

IPO Details

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