Analysts say that even though its premium in the gray market has come down due to market volatility, there may be a listing gain in this stock.
The listing of the largest pharmacy retail chain MedPlus Health Services is going to happen on 23 December. There is concern among investors whether its shares are listed at a premium or not. The question is whether investors will get listing gains. According to IPO Watch, the share of Medplus is trading at a premium of Rs 150-180 in the gray market, which is 18-22 per cent higher than the IPO price of Rs 796. However, this is less than the rate that was going on in the gray market on the day of the launch of the IPO. During that time it was trading at Rs 1,096 per share. Actually, this decline is coming due to the decrease in the secondary market.
Shares can be listed at premium
However, analysts say that this stock may list at a premium. The gray market premium may have come down due to market volatility, but there could be a listing gain in this stock. This IPO received good response from investors during the subscription period of December 3-15. This IPO got subscribed 53 times. The share of Qualified Institutional Buyers (QIBs) was subscribed 112 times, while the share of Institutional Investors was subscribed 85 times. Retail investors and employees also gave a good response to the issue. They got 5.23 and 3.05 times subscription respectively.
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Good financial performance of the company
The Rs 1,398 crore IPO includes new equity shares of Rs 600 crore and Offer for Sale (OFS) for shares worth Rs 798 crore of promoter and existing shareholders, funds from the new issue to meet the working capital requirements of the company subsidiary optical will be used to fulfill it. Medplus had made a profit of Rs 63.11 crore during the financial year 2020-21. Whereas in the financial year 2019-2020, it had earned a profit of only Rs 1.79 crore. The company’s revenue has increased from Rs 2,870.6 crore to Rs 3,069.26 crore during this period.
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