MedPlus Health Services IPO: Shares make strong debut on exchanges, list at 27% premium

The MedPlus Health Services Limited initial public offer (IPO) made a strong stock market debut on the bourses on Thursday, December 23, 2021. At 9.48 am, shares of India's second-largest pharmacy retail chain were listed at Rs 1015 per share on the BSE against an issue price of Rs 796 on Thursday. Investors made a profit of Rs 219.00 or 27.51% per share on the debut.  On the NSE, shares debuted at Rs 1040, a gain of 30%. 

"Trading Members of the Exchange are hereby informed that effective from December 23, 2021, the equity shares of Medplus Health Services Ltd (Scrip Code: 543427) are listed and admitted to dealings on the Exchange in the list of ''B'' Group Securities. For further details please refer to the notice no 20211222-46 dated December 22 2021," read information on the BSE

The listing was almost in line with the Zee Business Managing Editor Anil Singhvi's prediction. Singhvi had expected a reasonable listing for the IPO of the health services provider.

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"Expected to list in 925-1000 range against issue price of Rs 796," he had said.  

At 9.30 am, the pre-open indicative price on the BSE showed shares trading at 15.20% or Rs 121 per share discount to Rs 675. The price of the shares soon reversed as shares gained by Rs 154.00 or 19.35% to trade at 950 per share.  

MedPlus Health Services market capitalisation stood at Rs 12,109.53 crore on the listing

Earlier, the initial public offer (IPO) of MedPlus Health Services Limited was subscribed 52.59 times on the final day of the issue on December 15.

The offer of the second-largest Pharmacy retail chain in India comprised a fresh issue of up to Rs 600 crore and an offer for sale (OFS) of up to Rs 798.29 crore.      

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

Maximum bid quantity for the QIB investors 12,503,916 equity shares in multiple of 35 Equity Shares, while for the NIB Investors 8,931,366 equity shares in multiple of 35 Equity Shares.