Tue. Sep 26th, 2023

Medplus IPO: After closure of bidding for Medplus Health Services’ initial public offering (IPO), bidders and market observers are anxiously waiting for Medplus IPO allotment date, which is most likely on 20th December 2021. In 3-day subscription, Medplus Health IPO was subscribed 52.59 times whereas its retail portion was subscribed 5.24 times. After this strong response from investors, grey market is also giving bullish bias in regard to the public issue. According to market observers, share of Medplus Health are available at a premium of ₹260 in the grey market today.

Market observers said that Medplus IPO GMP today is ₹260, which is ₹10 higher from its yesterday’s grey market premium (GMP) of ₹250. They said that Medplus IPO grey market price has been oscillating around ₹225 to ₹280 for last one week that reflects that grey market is still positive about the public issue. They went on to add that after closure of subscription, strong subscription status of the IPO has also played an important role in keeping the grey market bullish on Medplus Health IPO. They said that grey market showing positive bias ahead of share allotment date signals that lucky allottees may expect attractive listing premium from the IPO.

What this GMP mean?

Market observers said that GMP gives an idea about the level of listing gain one can expect. As Medplus IPO GMP today is ₹260, it means grey market is expecting Medplus Health share listing around ₹1056 ( ₹796 + ₹260), which is more than 30 per cent from its price band of ₹780 to ₹796 per equity share.

However, stock market experts advised bidders to rely on the balance sheet of the company instead of GMP. They said that GMP is an unofficial data that has nothing to do with the balance sheet of the company.

Speaking on the fundamentals of Medplus Health; Abhay Doshi, Founder at UnlistedArena.com said, “Medplus is the second largest pharmacy retailer in terms of revenue from operations offering omni-channel platform having over 2000 retail stores while revenue from online sales accounts for around 9 per cent of total revenues. Revenue from operations and operating EBITDA grew at 16.21 per cent and 63.21 per cent respectively from FY2019-21. The performance of 6 months FY22 too, has been extraordinary. At the upper band, the issue is priced at around 6.8x to its book value (post-issue) and at 71.5x PE based on post issue annualized FY22 earnings. The issue looks richly priced even after considering remarkable performance.”

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