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Medplus Health IPO: What GMP reflects as all eyes set on share listing

Medplus IPO GMP today is ₹160, it means grey market is expecting that Medplus Health shares may list around ₹956 ( ₹796 + ₹160), believe market observers. Photo: Courtesy MedPlus Health website

2 min read . Updated: 21 Dec 2021, 02:14 PM IST Edited By Asit Manohar

Medplus IPO GMP today is ₹160, which is ₹25 higher from its yesterday's grey market premium of ₹135, say market observers

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Medplus Health IPO: Finalisation of Medplus Health Services share allocation has been announced and now all eyes are set on Medplus IPO listing date, which is most likely on 23rd December 2021. The public issue worth ₹1,398.30 crore was subscribed 52.59 times in 3-day bidding from 13th to 15th December 2021. After allocations of shares, grey market is also signaling about the book built issue. As per the market observers, shares of Medplus Health Services are trading at a premium of ₹160 in grey market today.

Medplus IPO GMP

According to market observers, Medplus IPO GMP today is ₹160, which is ₹25 higher from its yesterday's grey market premium of ₹135. Market observers said that Medplus IPO subscription status reflects investors' interest in the book built issue and this may reflect on the listing date as well. They said that Medplus IPO GMP had slipped from ₹220 to ₹135 levels due to the negative primary markets. Now, even after the huge selloff on Friday and Monday sessions, Medplus IPO GMP today is ₹160, which is around 20 per cent higher from its price band of ₹780 to ₹796 per equity share. They said that in such a bearish market, Medplus Health IPO GMP today is ₹160 that means grey market is bullish on the public issue even in this bear-ridden market.

What this GMP mean?

Market observers maintained that GMP is nothing but an unofficial data that helps find out an estimated listing gain from the IPO. As Medplus IPO GMP today is ₹160, it means grey market is expecting that Medplus Health shares may list around ₹956 ( ₹796 + ₹160).

However, stock market experts maintained that GMP is not the ideal indicator of listing premium. One should look at financials and balance sheet of the company as it gives concrete and clear financial status and business outlook of the company.

Highlighting what fundamentals indicate about Medplus Health IPO; Abhay Doshi, Founder at UnlistedArena.com said, "Medplus is the second largest pharmacy retailer in terms of revenue from operations offering omni-channel platform having over 2000 retail stores while revenue from online sales accounts for around 9 per cent of total revenues. Revenue from operations and operating EBITDA grew at 16.21 per cent and 63.21 per cent respectively from FY2019-21. The performance of 6 months FY22 too, has been extraordinary. At the upper band, the issue is priced at around 6.8x to its book value (post-issue) and at 71.5x PE based on post issue annualized FY22 earnings. The issue looks richly priced even after considering remarkable performance."

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