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Pharmacy retail chain MedPlus Health Services is set to list on leading stock exchanges BSE and NSE on Thursday. The company's initial public offering (IPO) was subscribed 52.59 times on the last day of offer that concluded on December 15. Stock market experts predict that Medplus shares may list at a moderate premium of 15-20%.

"After a mediocre listing of Metro shoes & Shriram property, the overall market mood is not encouraging. The business is still expected to list at a premium of 100-150 per share. According to current financials and profit growth, everything appears to be in order. Any price above 1200 will make the stock overvalued so making fresh investments one should avoid, because this is a high-capital-intensive business, margins may stay volatile. As a result, a long-term investor with a high risk appetite should consider it," said Ashish Sarangi, SEBI regd RIA at Pickright Technologies.

Medplus IPO had a fresh issue of up to 600 crore and an OFS of up to 798.3 crore. The price range was fixed at 780-796 per share.

“After the recent fall in the market, it seems bulls have lost grip over primary market and we have witnessed couple of disappointing listings in last few days. Medplus Health Services got good response. However, the issue was richly priced at around 71x based on FY22 earnings. I expect moderate listing over 15% to the issue price. However, If market is able to sustain the recovery, we may see a better debut but as of now, I believe one should limit the expectations," said Abhay Doshi, founder of Unlisted Arena.

Founded in 2006 by Gangadi Madhukar Reddy, MedPlus Health is the second largest pharmacy retailer in India.

"MedPlus is a good bet to invest due to it's unique omni-channel platform in India. The stock may list at a premium of 20% from it's price band or in the range of Rs. 940 to 960," said Ravi Singh, Head of Research & Vice President at ShareIndia.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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