MedPlus Health Services listing today: Experts say expect moderate to reasonable listing gain

Shares of MedPlus Health Services Limited, the second-largest Pharmacy retail chain in India, are all set to be listed on the bourse today, December 23, 2021. The initial public offer (IPO) of MedPlus Health Services Limited was subscribed 52.59 times on the final day of the issue, as the qualified institutional buyers had led the subscription on Day 3.  

The IPO of health services provider saw bids being made for 66,13,67,268 shares against reserved 1,25,75,154 shares.  The NIIs subscribed to the issue 85.33 times, retail quota saw 5.24 times subscription, while the QIBs portion was filled 111.9 times around 05:00 pm on Wednesday.  Quota reserved for employees was also oversubscribed almost thrice as the category was booked 3.05 times.    

The three-day initial public offer (IPO) had opened on December 13 and closed on December 15, 2021.  

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Ahead of the listing, Aayush Agrawal, Senior Analyst, Swastika Investmart Ltd said a lot has changed since the recent corrections and it could affect listing of this IPO as well.  

"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 in the last few days. Grey market is suggesting roughly around 10% of listing gain," said Aayush. 

Earlier, Zee Business Managing Editor Anil Singhvi had said that one can apply for this IPO for reasonable listing gain and with a long-term view.   

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 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 NIB Investors 8,931,366 equity shares in multiple of 35 Equity Shares.     

Axis Capital Limited, Credit Suisse Securities (India) Private Limited, Edelweiss Financial Services Limited and Nomura Financial Advisory and Securities (India) Private Limited are Book Running Lead Managers (BRLMs), while the sponsor bank is Axis Bank Limited.