Medplus tanks after 12.8% equity changes hand, early investors likely sellers

Shares of Medplus Health fell nearly 7% at the start of trading on August 31 after a block trade involving 12.8% shares, worth Rs 1,319 crore, took place on the stock exchange. .
About 1.5 crore shares changed hands at an average price of Rs 860 per share, down 3.5% from the closing price of Rs 891.10 the previous day.
At 09:24, Medplus Health was trading at Rs 833 on the NSE, down 6.5% from the previous close. While it was not possible to immediately identify the buyer and seller involved in the transaction, CNBC-TV18 previously reported that the company’s early investors, Lavender Rose and PI (Premji Invest) Opportunity Fund , is looking to sell a total of 8.1% stake in the transaction. capital. through block agreements.
According to the report, the block size is expected to be around Rs 830 crore, while the base price will be Rs 860 per share. According to June shareholder data, the PI Opportunity Fund holds 14.11% of the shares and Lavender Rose holds 17.24%.
MedPlus Health Services is one of the largest pharmacy chains in India that includes online pharmacies, diagnostic services and many more. Currently, the company claims to be present in 581 cities with nearly 4,000 stores.
In an interview with CNBC-TV18 in June, MedPlus promoter Gangadi Madhukar Reddy said the company plans to open 800 to 1,000 new stores this year. He also acknowledged that the expansion will continue to put pressure on the company’s profit margins.