MedPlus Health IPO: Should you subscribe? See what experts, brokerage recommend

The three-day initial public offer of MedPlus Health Services Limited opened for subscription on Monday (December 13, 2021) and will close on December 15, 2021. The IPO was subscribed 0.21 times around 11.30 am on Day 1. The issue saw bids being made for 26,84,106 shares against 1,25,75,154 allotted shares.  
As another IPO braces up for stock market debut, what should investors do with this share sale? Should they subscribe or give it a skip? Here is what experts and brokerage recommend.  

Ravi Singh, Vice President & Head of Research, Share India
With the overall transition in the organised retail pharmacy, Medplus is the only one to have omnichannel platform in the country. We recommend to subscribe the issue on the basis of its improved scale and profitability and the positive outlook of organised retail pharmacy in coming years.

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Manoj Dalmia, Founder and Director, Proficient Equities Limited
It is the second-largest pharmacy retailer in terms of stores and revenue with more than 2,000 stores spread across West Bengal, Karnataka, Andhra Pradesh, Telangana and Maharashtra.  
As estimated Issue Price of Rs 236 ((75.11*3.15) approximately, the issue price of this IPO is overvalued. "One may apply if the IPO registers good oversubscription on the final day."

Ravi Singhal, Vice Chairman at GCL Securities
The IPO looks terrific. it is the second-largest health services IPO in India, with good management and sales on all platforms, including online, via phone, and in retail locations. Although it is mostly based in the south, It exhibits strong development, with intense rivalry from both the unorganised and organised sectors, and the growth in the Covid era is sustainable.

Yash Gupta, Equity Research Analyst, Angel One Ltd    
We have a subscribe rating on Medplus Health Services Limited IPO. Based on H1FY2022 numbers, the IPO is priced at an EV/EBITDA of 27.5 times and price to sales at 2.5 times at the upper price band of the IPO. We believe that the company's omnichannel platform will help to deliver strong growth in future. Hence, we are assigning a “SUBSCRIBE” recommendation to the Medplus Health Services Limited IPO.

Marwadi Shares and Finance Limited

Considering the TTM (Sept-2021) adjusted EPS of Rs.8.99 on the post-issue basis, the company is going to list at a P/E of 88.58 with a market cap of Rs.94,962 mn. There are no listed companies in India whose business is comparable with that of the company’s business. We assign a “Subscribe” rating to this IPO as the company is the second-largest pharmacy retailer with a successful track record of expansion. Also, it is available at a reasonable valuation considering the future growth potential.

Earlier, Medplus has fixed a price band of Rs 780-Rs 796 for this IPO. One lot consists of 18 equity shares. An investor can apply for minimum one lot or 18 equity shares and in multiples thereof. Maximum subscription amount for a retail investor has been capped at Rs 2 lakh, while for eligible employees, it is Rs 5 lakh.