Companies

MedPlus to launch Rs 700 crore IPO soon

G Naga Sridhar Hyderabad. November 13 | Updated on November 13, 2019 Published on November 13, 2019

Madhukar Gangadi, Founder and CEO, MedPlus. File photo

Likely to close the year with a net profit of Rs 50 crore

Pharmacy retailer, MedPlus, is planning to come up with an Initial Public Offer (IPO) soon.

“We will be commencing the process including works such as Draft Red Herring Prospectus,” Madhukar Gangadi, Founder and CEO, MedPlus told newspersons here on Wednesday.

The size of the proposed IPO of the Hyderabad-based pharmacy chain is likely to be over Rs 700 crore.

Gangadi (promoters) has 77 per cent stake in the company while Azim Premji and others have 13 pc and 10 pc stake respectively.

“In India, people expect company to be making profit when they go public. I feel we are now in right time for this,” he said.

MedPlus to expected to close the year with a net profit of Rs 50 crore and over Rs 2800 crore revenue, he said. It had earlier planned for a pubic issue but did not proceed with it.

Expansion

With 1700 retail outlets across the southern states, MedPlus will now be expanding to the northern market leaving aside Jammu & Kashmir, Bihar and parts of Uttar Pradesh, Gangadi said. By 2023, it expecting to have about 3100 outlets across the country.

“We are able to seamlessly integrate offline and online model. About 18 per cent of our sales now come from online. This model will be way forward for us,” he added.

Published on November 13, 2019
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