Hyderabad-based Medplus draws up IPO plans

Hyderabad: City-based pharmacy retail chain MedPlus Health Services Pvt Ltd is looking at raising about Rs 700 crore through an an initial public offering (IPO).

"We want to start the work on the preparation of Draft Red Herring Prospectus (DRHP) from December. We are planning to raise about Rs 700 crore for our expansion and growth. I also want to offload some stake to take care of the promoter level debt," said Madhukar Gangadi, founder and Chief Executive Officer, MedPlus, told the media here.

The promoters hold 77 per cent and Wipro Chairman Azim Premji's Premji Invest holds 13 per cent while the rest is held by others. The company will review the idea of IPO if anybody offers to pick the stake.

It expects Rs 2,800 crore topline by the end of the current fiscal with Rs 85 crore EBITDA (earnings before interest, tax, depreciation and amortization) margins. The pharmacy retail chain currently operates 1,700 outlets across seven states and hopes to take the number to 3,100 by 2023 pan India.

"We open 150 stores every year. However, we will open more stores next fiscal, 200-300 outlets," Gangadi said. Online sales account for 16 to 17 per cent of total sales. Meanwhile, Medplus entered into an exclusive distribution agreement with Canada-based Jamieson Wellness Inc for selling the latter's natural health products through its retail network.

"This is a 100-year-old company which makes around 300 products including nutraceuticals and supplements. They are very very high-quality products. We will sell them through our stores," Gangadi said.

Jamieson Wellness manufactures a range of vitamins, minerals and other natural health supplements and its heritage Jamieson brand is available in over 40 countries.