India’s Medplus Health Services raises $55m from anchor investors
By Vinu Lal
11:14, 13 December 2021
Indian pharmacy retailer Medplus Health Services has raised INR4.18bn ($55.16m) from 36 anchor investors ahead of its initial stake sale to the public, the company said in an exchange update.
The firm allocated 5.25 million shares to marquee investors at its upper end of the initial public offering (IPO) price band of INR796 a share.
Abu Dhabi fund, Fidelity, Goldman Sachs invest
Abu Dhabi Investment Authority - Behave, Blackrock Global Funds-India Fund, Fidelity Investment Trust Fidelity International Small Cap Fund and Nomura Funds were among the top investors subscribing to 6.59% of the anchor investor portion.
Goldman Sachs Funds (5.25%), Morgan Stanley India Investment Fund (5.25%), HDFC Trustee Company (5.74%) and Aditya Birla Sun Life Trustee Private (3.82%) were among others who were allotted shares.
Of the total, 1.8 million shares were allocated to seven domestic mutual funds through a total of 18 schemes. These included HDFC Trustee Company, Aditya Birla Sun Life Trustee Private, Various Funds of SBI and Nippon Life India Trustee.
Medplus had earlier fixed a price band of INR780-INR796 a share for its IPO, which opened today. The company was looking to raise about INR13.99bn at the upper end of the price range.
The IPO comprises a fresh issuance of shares of up to INR6bn and an Offer For Sale of up to 7.9bn by existing investors.
Of the total net proceeds from the fresh issue, Medplus would use INR4.7bn as working capital requirements for its subsidiary Optival. A yet-to-be finalised amount would be utilised for its general business purposes, according to the Red Herring Prospectus (RHP or final papers) filed with the Indian market regulator.
Axis Capital Limited, Credit Suisse Securities (India), Edelweiss Financial Services and Nomura Financial Advisory and Securities (India) are the managers to the issue.
Medplus Health Services is a leading pharmacy retailer in India in terms of revenue from operations for the financial year 2021 and the number of stores as of 31 March 2021, according to a report by a financial services firm.
As of 30 September 2021, through its subsidiaries, Medplus operated 2,326 stores in 261 cities across the states of Telangana, Andhra Pradesh, Karnataka, Tamil Nadu, West Bengal, Maharashtra and Odisha, with an aggregate retail space of about 1.36 million square feet, it said.