Warburg Pincus Exits MedPlus With INR 836 Cr Stake Sale

Warburg Pincus, a leading private equity firm, has exited MedPlus Health Services by divesting its entire 11.35% stake in the pharmacy chain for INR 836 Cr through an open market transaction.

According to the bulk deal data from the National Stock Exchange (NSE), Lavender Rose Investment Ltd, a Mauritius-based subsidiary of Warburg Pincus, sold 1.35 Cr shares, marking the complete sale of its holdings in MedPlus Health Services.

The shares of MedPlus were sold at INR 616.48 each, bringing the total deal value to INR 836.16 Cr.

Singapore government and ICICI Prudential Mutual Fund stepped in as buyers, acquiring 62.45 Lakh shares, or a 5.2% stake in MedPlus Health Services, at prices ranging from INR 616 to INR 616.20 per share. This portion of the transaction was valued at INR 384.72 Cr.

MedPlus launched its first pharmacy in February 2006 in Hyderabad. Today, the company claims to have expanded to over 4,000 pharmacies across India, serving more than 350,000 customers daily, as per its Linkedln profile.

MedPlus offers a diverse selection of products, including pharmaceutical and wellness items such as medicines, vitamins, medical devices, and test kits. Additionally, it provides a variety of FMCG products, including home and personal care essentials like toiletries, baby care items, soaps, detergents, and sanitizers.

In July, global brokerage firm Nomura lowered its price target for MedPlus by over 5% to INR 931, citing the stock’s disappointing performance since its market debut in December 2021.

However, Nomura noted that, despite recent challenges, MedPlus Health remains well-positioned to capitalise on the ongoing transition in the pharmacy sector from unorganised to organised segments, as well as the increasing demand for low-cost generic medications.

MedPlus’ consolidated net profit rose 3.8 times to INR 14.36 Cr ($1.7 million) for the quarter ended June 30. The company’s revenue from operations rose almost 16% to INR 1,489 Cr.

The shares were trading at INR 662.80 today at 1:06 PM.

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