HYDERABAD: Corporate pharmacy retail chain Medplus is gearing up for an Initial Public Offering to raise Rs 700 crore.
The company will start preparing the Draft Red Herring Prospectus next month and the proceeds will be used to fund the expansion of retail outlets across the country. As part of the fundraising process, Medplus’ promoter Madhukar Gangadi may consider offloading a part of his stake to pare debt.
Currently, the city-based retail chain operates 1,700 outlets across seven states but has plans to nearly double it to 3,100 by 2023. As part of the proposed expansion, Medplus will also foray into newer states to ensure a pan-India presence in 3-4 years.
“This (fund-raising) is for our growth plans and to reduce debt,” said Gangadi, who holds about 77 per cent. While Wipro’s Azim Premji owns 13 per cent stake, the remaining stake is held by others. According to Gangadi, the company may clock Rs 2,800 revenue during the current fiscal.
Meanwhile, Medplus entered into an exclusive distribution agreement with Canada-based Jamieson Wellness Inc to retail the latter’s natural health products. They would be sold across existing outlets, but gradually, may extend the tie-up with other retailers. Jamieson Wellness’ products include a wide range of daily multivitamin and mineral supplements.