Wellness Forever Medicare Limited filed Draft Red Herring Prospectus (DRHP) for IPO with SEBI on September 30, 2021. Wellness Forever held back its IPO due to adverse stock market conditions in 2022 and the IPO approval by SEBI lapsed in February 2023.
Important – Now Wellness Forever Medicare Limited will need to re-file papers with SEBI and get fresh IPO approval.
All the details in the article regarding Wellness Forever Medicare are taken from the last DRHP available on SEBI and the stock exchange website. We will update the IPO details as soon as the company re-files the paper for IPO.
Wellness Forever Medicare intended to raise money by fresh issue of equity shares aggregating up to Rs. 400 crores, and offer for sale (OFS) for 1.60 lakhs equity shares
The face value of each Wellness Forever Medicare Limited equity share is Rs. 2 each.
The book-running lead managers of the public offering are IIFL Securities Limited, Ambit Private Limited, DAM Capital Advisors Limited and HDFC Bank Limited. Link Intime India Private Limited was the registrar of the IPO offer.
Ashraf Mohammed Biran, Gulshan Haresh Bakhtiani, and Mohan Ganpat Chavan are the promoters of the company. Collectively they hold 24,776,124 shares or 48.81% of the pre-issue share capital.
Wellness Forever Medicare Limited IPO Details
Wellness Forever Medicare needs to get fresh SEBI approval for IPO. We will update you as soon as the company receives approval and comes out with an IPO.
| Particulars | Details |
| IPO Opening date | (To be announced) |
| IPO Closing date | (To be announced) |
| IPO Price | Rs. xx to Rs. xx (To be announced) |
| Lot size | xx shares (To be announced) |
| Issue size | Rs. xx Cr (To be announced) |
| No. of fresh shares | Xx shares aggregating to Rs. 400 crores |
| Offer for Sale | 160,44,709 shares aggregating to Rs. xx crores |
| Listing on | BSE and NSE |
Here you can check the – list of more upcoming IPOs.
Wellness Forever Medicare Limited IPO Timetable
We shall update you when the IPO is ready to be launched.
| Particulars | Details |
| IPO Opening date | (To be announced) |
| IPO Closing date | (To be announced) |
| Basis of Allotment date | (To be announced) |
| Credit of Share | (To be announced) |
| Listing date | (To be announced) |
Wellness Forever Medicare Limited Overview
Wellness Forever Medicare Limited is India’s third largest retail pharmacy and wellness network by number of stores, with a leading position in Western India.
The company operates as a large omnichannel, hyperlocal retail network under our “Wellness Forever” brand, serving as a one-stop solution for our customers’ wellness needs.
Most of their stores operate 24×7. The first drugstore started operation in 2008 and has expanded to a total of 236 stores in 23 cities across the Indian states of Maharashtra, Karnataka and Goa.
They have grown the store network from 144 stores as of March 31, 2019, to 236 stores as of June 30, 2021, at a CAGR of 24.54% over that period.
Wellness Forever now serves a customer base of 6.7 million as of June 30, 2021.
The company offers a wide selection of both pharmaceutical and wellness products comprising approximately 91,500 items in inventory, with each of our stores featuring an average of approximately 13,000 items per store.
The major categories of products sold at Wellness Forever stores include
#1. Pharmaceutical products that include both over-the-counter and prescription medicines for chronic and nonchronic conditions.
#2. Fast-moving consumer goods, which include foods, baby care products, personal care products, and cosmetics.
#3. Surgical products comprise medical devices like nebulizers, thermometers, pulse oxymeters, and orthopedic products like splints, braces, collars, and slings.
#4. Premium Label products, which comprise pharmaceutical products and FMCG products which have a margin of over 30%.
Wellness Forever total revenue from operations increased from Rs. 676.9 crores in fiscal year 2019 to Rs. 924.0 crores in fiscal year 2021 at a CAGR of 16.83%.
The company has a strong focus on non-pharmaceutical sales and premium wellness products with higher margins. Sales of non – pharmaceutical products represented 45.72% of the revenue from operations, for the fiscal year 2021.
Wellness Forever Medicare Limited GMP
Grey Market Price (GMP) information is available approximately 4-5 days before the IPO opens and persists until the listing date.
For Wellness Forever Medicare Limited Ltd IPO, we have already obtained GMP data for the past 3 days, which should provide a reasonable indication of price upon listing.
GMP serves as an effective reflection of the true narrative surrounding a stock. But you need to take precautions because GMP is not an official price and only an indicative value.
Below is a brief summary of the GMP for Wellness Forever Medicare Limited Ltd for the last 4 days obtained from various sources on the internet.
| Date | GMP |
| 2023 | Rs. xx (To be announced) |
| 2023 | Rs. xx (To be announced) |
| 2023 | Rs. xx (To be announced) |
| 2023 | Rs. xx (To be announced) |
You can check a more comprehensive way to analyze a stock.
Wellness Forever Medicare Limited Subscription Data
The details will be available during the IPO issue opens for subscription.
| Date | QIB | NII | Retail | Employee | Total |
| Day – 1 2023 | (To be announced) | (To be announced) | (To be announced) | (To be announced) | (To be announced) |
| Day – 22023 | (To be announced) | (To be announced) | (To be announced) | (To be announced) | (To be announced) |
| Day – 32023 | (To be announced) | (To be announced) | (To be announced) | (To be announced) | (To be announced) |
Wellness Forever Medicare Limited Promoters
As per the DRHP, Ashraf Mohammed Biran, Gulshan Haresh Bakhtiani, and Mohan Ganpat Chavan are the promoters of the company.
Collectively they hold 24,776, 124 shares or 48.81% of the pre-issue share capital.
Anita Gulshan Bakhtiani was named as the sole member of the promoter group. She holds 40,548 shares
Including Anita, the total promoter and promoter group shareholding amounts to 48.89% or 24,816,672 shares of the issued capital.
Wellness Forever Medicare Limited Financials
Key financials of Wellness Forever Medicare Limited Ltd for the last three financial years is under. These include the fiscal years FY21, FY20 and FY19.
| Details | FY- 2021 | FY- 2020 | FY- 2019 |
| Revenue from operations | Rs. 924 cr | Rs. 863.2 cr | Rs. 677 cr |
| Total expenses | Rs. 987 cr | Rs. 871.2 cr | Rs. 684 cr |
| Net Loss | Rs. 34.8 cr | Rs. 5.3 cr | Rs. 1.3 cr |
| EPS | Rs. – 7.11 | Rs. – 1.16 | Rs. – 0.31 |
| Return on net-worth | -13.07% | -3.15% | -1.20% |
| Net Asset Value per Equity Share | Rs. 54.43 | Rs. 36.64 | Rs. 26.86 |
The revenues from operations of Wellness Forever have grown in the last three years from Rs. 684 cr to Rs. 987 cr. But the net losses have also grown from Rs. 1.3 cr to Rs. 34.8 cr during the same period.
The return on net worth is also negative for the past three years.
Learn here the – Detailed techniques for financial statement analysis.
Wellness Forever Medicare Limited Peer Comparison
There are no listed companies in India that are comparable in all aspects of business and services as that of Wellness Medicare Limited.
Accordingly, it is not possible to provide an industry comparison.
Wellness Forever Medicare Limited IPO – Objects of the Issue
Wellness Forever Medicare Limited proposes to utilize the Net Proceeds from the Issue for –
#1. Funding Capital Expenditure for Setting up New Stores
Wellness Forever plans to expand by setting up stores in India with a focus to meet the increasing demand for pharmacy and wellness solutions in metropolitan cities, tier-I and tier-II cities.
The company proposes to open around 180 stores by Fiscal 2024 at an estimated cost of Rs. 70.2 crores.
#2. Repayment or Pre-payment of Borrowings
As of August 31, 2021, Wellness Forever has total outstanding borrowings aggregating to Rs. 122.55 crores. A majority of the borrowings are from HDFC Bank, Yes Bank and IDFC Bank Limited.
The company proposes to utilize an estimated amount of Rs. 100 crores from the IPO money to repay/pre-pay the borrowings.
#3. Funding Incremental Working Capital Requirements
The company will require additional working capital for funding its incremental working capital requirements in FY 2023 and 2024.
As on August 31, 2021, the outstanding amount under the fund-based working capital facilities of our Company was Rs. 97.06 crores and the outstanding amount under non-fund-based facilities was Rs. 3.49 crores.
Wellness Forever proposes to utilize Rs. 122 crores for the increase in working capital requirements.
#4. General Corporate Expenses
Rest of the amount the company intends to use for General corporate purposes like funding growth opportunities, fuel growth engines for their brands, meeting exigencies and brand building.
Wellness Forever Medicare Limited Tentative Issue size
Rs. XX crores. (Will be updated later)
Should You Apply For Wellness Forever Medicare Limited IPO?
Wellness Forever boasts of a unique retail platform within India’s fast-growing pharmaceutical retail sector. They have developed an Omni-channel, hyper-local presence increasing customer touch points which is unique. Most of their stores operate 24×7.
The company has a demonstrated track record of retail footprint expansion in three states of Maharashtra, Goa and Karnataka. They have grown the store network from 144 stores as of March 31, 2019, to 236 stores as of June 30, 2021, at a CAGR of 24.54% over that period.
Wellness Forever now serves a customer base of 6.7 million as of June 30, 2021. They have a valuable and trusted “Wellness Forever” brand
But the company is having net losses from Rs. 1.3 cr to Rs. 34.8 cr from FY 2019 to FY 2021. The return on net worth is also negative for the past three years.
