MedPlus Health shares may list at ‘moderate’ premium on debut

“After average listing of Metro shoes and Shriram properties, overall market mood is not encouraging. Business is still expected to be listed at premium 100-150 per share. As per the current financials and profit growth, everything seems to be in order. Any price above 1200 would overvalue the stock so fresh investments should be avoided, as this is a highly capital-intensive business, margins can remain volatile. Consequently, a high-risk long-term investor should consider it,” said Ashish Sarangi, SEBI registered RIA with Pickwright Technologies.

MedPlus IPO Had A Fresh Issue To Up 600 crores and up to an OFS 798.3 crores. The price was fixed on the limit 780-796 per share.

“Following the recent decline in the market, it seems that the bulls have lost their grip on the primary market and we have seen some disappointing listings in the past few days. Medplus Health Services got good response. However, based on FY12 earnings, the issue price was around 71 times. I expect a listing above 15% of the issue price. However, if the market continues to improve, we may see a better start, but as of now, I believe one should limit expectations,” said Abhay Doshi, Founder, Unlisted Arena.

Founded in 2006 by Gangadi Madhukar Reddy, MedPlus Health is the second largest pharmacy retailer in India.

“MedPlus is a good bet to invest in India due to its unique omni-channel platform. The stock may get listed at a premium of 20% from its price band or in the range of Rs 940 to Rs 960,” said Ravi Singh, Head Said K.K., Vice President and Research at ShareIndia.

The views and recommendations given above are those of individual analysts or broking companies and not of Mint.