Home / Markets / Stock Markets /  MedPlus Health shares surge after listing at premium over issue price

Shares of pharmacy retailer MedPlus Health Services made a decent stock market debut on Thursday with the scrip listing at 1,040 per share on the NSE, a premium of over 30% as compared to its IPO issue price of 796 apiece. On BSE, MedPlus shares started the trade on its first day at 1,050. The stock surged further to make an intraday high of 1,119 in early deals.

“Long-term investors should hold the stock and it might turn into a wealth creator in the next 2-3 years, however, short-term investors are advised to keep an SL of 875. We believe the growth opportunities from the industry will justify the company's valuation in the long run, even if it appeared to be expensive at first glance," said Santosh Meena, Head of Research, Swastika Investmart Ltd.

The initial public offering (IPO) of MedPlus Health was subscribed 52.59 times. The public issue had a fresh issue of up to 600 crore and an offer-for-sale (OFS) of up to 798.3 crore. The company had fixed a price range for the offer at 780-796 per share. The proceeds from the fresh issue is aimed to be used for funding the working capital requirements of the company's subsidiary Optival.

MedPlus was founded in 2006 by Gangadi Madhukar Reddy, who is the company's managing director and chief executive officer (CEO). The Hyderabad-based pharmacy retailer offers a wide range of products, including pharmaceutical and wellness products and FMCG products like home and personal care items.

As of June 31, 2021, the company has a strong pharmacy retail network of 2,165 stores across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal, and Maharashtra. Medplus was the first pharmacy retailer in India to offer an omnichannel platform and continues to scale up its retail store network.

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

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