The Indian stocks market has recently seen a flurry of IPOs with the successful listing of many. The strong wind blowing in the IPO market aided by a liquidity glut has attracted more companies to check market interest with their offers. Following the same trend, Wellness Forever, a retail pharmacy chain, will float an IPO offering for Rs 1000-1200 crore. Sources knowledgeable of the development stated that the firm has already submitted the draft RHP with the market regulator. If everything goes smoothly, the IPO will hit the market in this calendar year.
Wellness Forever made a debut in 2008 and had touched the lives of millions of Indians in the last twelve years. The brand is a 200 plus chain of retail pharmacies with a strong presence in Maharashtra, Karnataka, and a few other neighbouring states. They have expansion on the plate, and with the proceeds from the IPO, they will add more stores to their chain in the next two years.
The company has primarily received fundings from HNI investors. In November 2020, they received Rs 130 crores fundings from Adar Poonawalla of Serum Institution. The IPO offer is likely to contain OFS shares from existing HNI shareholders offering a partial exit.
Wellness Forever will become the first pharmacy to list in the Indian bourses. They have already appointed investment bankers and advisors to assist in the smooth listing process.
The pharmacy exhibited a robust financial performance over the last few fiscals as revenue grew to Rs 870.79 crores in FY 2020 from Rs 683.25 crores in the previous financial year. Profit after tax stood at Rs 11.25 crores against Rs 8 crores the year before. With strong financials, it is likely to create a lot of interest among investors.
Wellness Forever IPO At A Glance
While analysts continue to cull through the draft RHP filed by the company, let’s glance through the key highlights of the offer.
According to the file submitted with the SEBI, Wellness Forever is seeking to raise Rs 1000-1200 crores from the market. Wellness Forever IPO size will contain both primary and offer for sale equities. It is expected that current HNI investors will offload a significant amount of shares, although the final proportion isn’t yet known.
Once they receive approval, the Wellness Forever IPO will hit the market in the current calendar year.
The initial public offering is a common way adopted by companies to raise funds from the market. Several companies have received mileage from IPOs in the past, which have made it a favourite way for the companies. The Indian primary market had shown significant potential in becoming a favourite destination for companies seeking listing. Like Wellness Forever, several other companies are planning to make stock market debuts through IPOs, including tech startups like Zoamto.