Adar Poonawalla-backed pharmacy chain Wellness Forever files for IPO

Plans to raise Rs 1,500-1,600 cr; This is the second pharmacy chain to file for IPO after Hyderabad-based MedPlus, which filed its DRHP with Sebi in August

Adar Poonawalla backed pharmacy chain Wellness Forever Medicare is planning to go for an initial public offering (IPO) to raise between Rs 1,500-1,600 crore.

The omni-channel retail pharmacy chain has already filed a draft red herring prospectus with the market regulator. The pharmacy chain’s revenue for the financial year ended March 31, 2021, grew to Rs 924.02 crore, from Rs 863.25 crore in the previous fiscal year.

This will be the second pharmacy chain to file for an IPO after Hyderabad-based MedPlus, which filed its DRHP with Sebi in August.

The IPO consists of a fresh issue of equity shares aggregating to Rs 400 crore and an offer for sale up to 1.60 crore equity shares, according to DRHP.

The company proposes to utilise net proceeds from the fresh issue to the tune of Rs 70.20 crore for funding capital expenditure for setting up new outlets, repayment or prepayment in part or full of certain borrowings amounting to Rs 100 crore, funding its working capital requirements to the extent of Rs 121.90 crore besides general corporate purposes

The Mumbai-based brand Wellness Forever founded by Ashraf Biran, Gulshan Bakhtiani and Mohan Chavan in 2008, has 236 stores across 23 cities in Maharashtra, Goa, Karnataka.

As of June 30, 2021, it serves a registered customer base of 6.7 million customers. It now intends to deepen its penetration in tier 2 and 3 markets besides participating actively in the growing pharmacy e-commerce segment which is expected to grow at a 45 percent CAGR.

IIFL Securities Limited, Ambit Private Limited, DAM Capital Advisors Limited, and HDFC Bank Limited are book running lead managers to the issue.