MedPlus Health Services debuts on a good note with 27% premium

• Shares of MedPlus Health Services listed at ₹1,015 while the price band was fixed at ₹780-796 per share.
• The IPO received good response from investors as it has been subscribed 52.59 times on the last day of the bidding.
• The market capitalisation of the company stood at ₹12,109 crore.

Hyderabad-based pharmacy retail chain Medplus Health Services made a decent debut on the National Stock Exchange (NSE) and BSE despite weak market trends. The stock listed at ₹1,015, which is 27.5% more than the issue price band of ₹780-796 apiece.

Shares of the company exceeded investors and analysts' expectations on listing gains as even a grey market had indicated a premium of just 20%.

“The outlook for the industry is bullish and the performance of the company is ok with reasonable valuation however the sentiments have changed a little jittery for IPO listing for the last few days. Grey market is suggesting roughly around 10% of listing gain,” said Aayush Agrawal, senior analyst at Swastika Investmart.

Post listing, the market capitalisation of the company stood at ₹12,109 crore, according to BSE data.

The shares of Medplus Health Services were trading at ₹1,100, higher by 38% at 10.00 a.m., on December 23.

The IPO, which was open between December 13 and December 15, received good response from investors. It was subscribed 52.50 times on the last day of the bidding.

The company is India's second-largest pharmacy retailer in terms of the number of stores and revenue. It started with 48 stores in Hyderabad and it currently has over 2,000 stores across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal and Maharashtra, as of March, 2021.

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