The second largest retail pharmaceutical chain in India Medplus Health Services Ltd. (Medplus) made the stock market debut on December 23 after the initial public offering of Rs 1,398-Crore (IPO) received a good response from investors.

IPO, which is open to subscribe from December 13 to 15, subscribe to 52.59 times. The company has improved the offer price at RS 780-769 a of the nominal value of each RS 2 respectively.

An extraordinary response to offers equipped with higher premiums ordered by companies in the gray market in the early days. Premium on December 13 reached Rs 300 per share but since then eroded until RS 180 on December 22, according to the IPO watch that tracks the gray market price for listings.

The gray market is an unofficial trade platform where shares are traded well before allotment in the IPO and register on the stock exchange.

Experts said that despite the basics of companies remained intact, the decline in gray market premiums was caused by negative sentiment around the equity market after Omicron’s gaze and the central bank’s Hawkish attitude.

They, however, hope that sharing to register with a 30 percent profit with the price of RS 1,000-1,050, the “safe investor” can be used as an opportunity to get out.

The IPO received an offer for 66.13 crore equity shares against the size of the IPO 1.25 Crore Equity shares, producing demand for shares worth RS 52,645 Crore. The company raised Rs 1,398 Crore through its public problems in the price ribbon above Rs 796 per share.

Institutional investors who meet the requirements of buying shares 111.89 times the given quota and the portion set aside for non-institutional investors subscribing 85.33 times, requests from retail investors and employees are also strong because their backup portion subscribes 5.23 times and 3.05 time.

The company on December 10 mopped RS 418 crore from 36 anchor investors by allocating 52.51.111 equity shares at the top of the ribbon price of Rs 796. Investor Marquee including Abu Dhabi investment authorities, global funds, nomura, global investment, Trust, Goldman Sachs, Morgan Stanley , Wasatch Fees Fees Fund, Portfolio Carmignac, and CI Asian Tiger Fund.

Domestic investors such as HDFC Trustees, Aditya Birla Sun Life, SBI Mutual Funds, Nippon Life, Mutual Fund Boxes, Motilal Mutual Funds, HDFC Live Insurance, Prudential Icici Life Insurance, SBI Life Insurance, and Edelweiss also invested in the company.

The company has more than 2,000 retail networks distributed in Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal, and Maharashtra, until March 31, 2021.

For FY2021, the average income per store stands at RS 1.6 Crore, compared to the average income per store in the domestic pharmaceutical retail industry around Rs 0.23 Crore.

For FY21 and six months ended September 30, 2021, the operating level of EBITDA operating for mood stores is 11 percent and 11.58 percent, and the operation level of its operation on the capital used (RoCe) for the forfy21 adult store around 60 percent.