Pharmacy retail chain Medplus plans IPO to raise Rs 700 Cr
Pharmacy retail chain Medplus is planning an initial public offering (IPO) aimed at raising about Rs 700 crore, promoter of the company said, on Wednesday.
At present, the city-based retail chain operates 1,700 outlets across seven states and hopes to take the number to 3,100 by 2023 pan India, barring Jammu and Kashmir, Northeast, and parts of Uttar Pradesh, Promoter of MedPlus Health Services Pvt Ltd Madhukar Gangadi, said.
"We want to start the work (preparation of Draft Red Herring Prospectus-DRHP). Will start from December. We are planning to raise about Rs 700 crore. This is for our growth plans. I also want to offload some stake to take care of the promoter level debt. But the amount is mainly for growth," he said.
The promoters hold 77 percent and Wipro Chairman Azim Premji's Premji Invest holds 13 percent while the rest is held by others.
The company would review the idea of an IPO only if anybody offers to pick the stake.
Replying to a query, he said the company expects Rs 2,800 crore topline by the end of the current fiscal with Rs 85 crore EBITDA (Earnings before interest, tax, depreciation, and amortization) margins.
Meanwhile, Medplus said it entered into an exclusive distribution agreement with Canada-based Jamieson Wellness Inc for selling the latter's natural health products through the former's retail outlets.
Madhukar said the products would initially be sold across the existing outlets and eventually tie up with other retailers also.
Jamieson Wellness manufactures a range of vitamins, minerals and other natural health supplements and its heritage Jamieson brand is available in over 40 countries.
A range of Jamiesons products such as daily multivitamins, B complex, Vitamin C, Vitamin D and Calcium, Cod liver oil, Folic acid, Iron, Digestive enzymes etc. are now available in Medplus pharmacies and online.
(Edited by Saheli Sen Gupta)