MedPlus makes stellar debut on bourses

India’s No. 2 pharmacy retail chain MedPlus Health Services, backed by investors such as Warburg Pincus and Premji Invest, made a strong debut on the bourses on Thursday.

Its shares opened at Rs 1,040 per share on the NSE, representing a 30% premium over its issue price of Rs 796 per share. They touched an intra-day high of Rs 1143.90 before closing at Rs 1120.

Analysts said the company deserved the welcome it received on the bourses citing its strong fundamentals and wide geographical presence.

“While being an omnichannel retailer, it is also not a cash burner like many of the new-age online companies which burn a lot of cash. We advise the investors to hold for the long term and witness the company’s growth,” Geetanjali Kedia, a senior research analyst at S P Tulsian Investment Advisers, said.

The company’s healthy growth in terms of revenue in the last two to three years and strong financials were the reasons for attracting investors’ interest, Kedia explained.

Others such as Arun Kejriwal, founder of advisory firm Kejriwal Research, agreed.

“The company closed with gains of Rs 324, which translates to about 40% on the issue price. It is certainly a good listing by all standards,” Kejriwal said.

The issue is richly valued, it showed the market expected the company to do well, he added.

MedPlus had set a price band of Rs 780-796 a share for its Rs 1,398 crore initial public offering.

Its primary issue was subscribed 52.59 times.

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