Medplus Health Services Ltd.: Subscribe

Date

13 Dec 2021 - 15 Dec 2021
Price Range

₹ 780 - ₹ 796
Minimum Order Quantity

18
(D) RHP

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Incorporated in 2006, MedPlus Health Services is India’s 2nd largest pharmacy retailer in terms of the number of stores and revenue. The company offers pharmaceutical and wellness products i.e. medicines, vitamins, medical devices, test kits, and fast-moving consumer goods like home and personal care products sanitizers, etc. It is also the 1st pharmacy retailer in India to offer an omnichannel platform wherein customers can purchase products through stores, place orders over the telephone, online orders and a “Click and Pick” facility. The company has maintained a strong focus on scaling up their store network, having grown from operating their initial 48 stores in Hyderabad at the inception of their business to operating a 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. They have witnessed a massive growth of 17% in store expansion in FY20-21. Medplus started actively focusing on online sales in FY20 and their focus is on “speed” and “convenience” as a customer value proposition for customers who place an order online. They are now able to deliver their customers’ online purchases within 2 hours of purchase in select cities of Hyderabad, Bangalore, Kolkata, Pune and Nagpur. Almost 9% of their revenue from operations are from online platform. Company’s business operations across the entire value chain are backward integrated and are wholly-managed and operated by them. Their operations are supported by their technology-driven supply chain and distribution infrastructure, organized in a hub-and-spoke model

Objects of the issue:

The IPO proceeds shall be used towards the following purposes

Investment into the material subsidiary “Optival” for funding working capital requirement of up-to INR 4.67 Bn
General corporate purposes, balance INR 1.33 Bn

Investment Rationale:

Consistently delivering compelling customer value proposition

The MedPlus brand stands for genuine and good quality products. They are able to offer discounts up-to 20% to customers given integrated supply chain and cost efficient model. They cater to a wide range of customers, including discount seekers, customers with urgent needs and customers who value convenience. Their transparent pricing, with discounts based on average order value, allows them to address the needs of different segments appropriately. They have developed a better understanding of their customers requirements through years of operational experience (up-to15 years), active customer engagement and leveraging the real time data analytics platform. They expect that their well-established brand, quality pharmaceutical products offering, array of products, ability to achieve high fulfilment rates, offering of neighborhood convenience with large store footprint, along with competitive pricing to their customers, will continue to drive their gains in market share

Date

Price Range

Minimum Order Quantity

(D) RHP

Objects of the issue:

Investment Rationale: