The MedPlus Health Services IPO was one of the major healthcare retail IPOs in India when it launched in December 2021. The company operates a large chain of pharmacies and online medicine delivery platforms.
But investors still ask: Was the MedPlus IPO good or bad for investors?
Let’s analyze the IPO details, listing performance, strengths, risks, and the final verdict.
About MedPlus Health Services
MedPlus Health Services Limited is one of India’s largest pharmacy retail chains. The company sells medicines, healthcare products, and diagnostic services through both physical stores and online platforms.
The company operates thousands of pharmacies across multiple states and has strong presence in cities like Hyderabad, Chennai, Bengaluru, and Kolkata.
Key business segments include:
- Retail pharmacy stores
- Online medicine delivery
- Diagnostic services
- Healthcare products
MedPlus follows an omnichannel model, combining physical retail stores with digital ordering platforms.
MedPlus IPO Details
Here are the key IPO details:
- IPO opening date: 13 December 2021
- IPO closing date: 15 December 2021
- Listing date: 23 December 2021
- Price band: ₹780 – ₹796 per share
- Issue size: about ₹1,398 crore
- Lot size: 18 shares
- Listing exchanges: NSE and BSE
The IPO included:
- Fresh issue: ₹600 crore
- Offer for sale: ₹798 crore
The company planned to use the fresh funds mainly for working capital and expansion of its subsidiary operations.
Subscription Demand
Investor demand for the IPO was very strong.
The issue was subscribed about 52.6 times, which is considered extremely high in the IPO market.
This strong demand indicated high investor confidence in the company and the pharmacy retail sector.
Listing Performance
The IPO delivered excellent listing gains.
- Issue price: ₹796
- Listing price: around ₹1,120
- Listing gain: about 40% on the first day.
This means investors who sold shares on listing day made significant profits.
Current Stock Performance
Over time, the stock has been relatively stable.
As of early 2026, the share price has been trading around ₹830–₹860, close to the IPO price range.
Key financial indicators include:
- Market cap around ₹9,900 crore
- P/E ratio about 48
This shows that the stock has not become a multibagger but has also not collapsed after listing.
Strengths of MedPlus
1. Growing Pharmacy Retail Sector
India’s healthcare and pharmaceutical retail market is expanding rapidly due to rising healthcare demand.
2. Strong Retail Network
MedPlus operates thousands of pharmacies across multiple states and continues to expand its store network.
3. Omnichannel Business Model
The company combines offline pharmacies and online medicine delivery, which helps it compete with other digital healthcare platforms.
4. Strong IPO Demand and Listing Gains
The IPO delivered excellent listing gains of around 40%, benefiting short-term investors.
Risks and Weaknesses
1. High Valuation
At the time of the IPO, the company had a high P/E ratio above 70, which some analysts considered expensive.
2. Low Return on Equity
The company’s ROE has been around 5–6%, which is relatively low for a retail business.
3. Strong Competition
The pharmacy retail market is highly competitive with players such as:
- Apollo Pharmacy
- Netmeds (Reliance)
- Tata 1mg
4. Moderate Long-Term Returns
The stock price has remained close to the IPO level after several years.
Financial Snapshot
Key numbers include:
- Revenue around ₹6,000+ crore
- Profit about ₹150 crore
- Market cap nearly ₹10,000 crore
These numbers show the company has strong revenue growth but moderate profitability.
Final Verdict – Is MedPlus IPO Good or Bad?
Short answer: The MedPlus IPO was good, especially for listing gains, but long-term returns have been moderate.
Positive Points
- Strong subscription (52x)
- Excellent listing gain (around 40%)
- Growing pharmacy retail sector
- Large store network
Risks
- High valuation
- Low profitability ratios
- Strong industry competition
Overall Rating
7/10 – A good IPO with strong listing gains and stable long-term performance.
Short-term investors benefited from the strong listing. Long-term investors have seen moderate but stable performance rather than explosive growth.
