Medplus Health Services sheds 2% after drug controller suspends licence of subsidiary firm

Shares of Medplus Health Services lost 2 percent intraday on December 22 after the Drugs Control Administration of Telangana suspended the licence of a subsidiary company for five days.

The suspension came for violation of various conditions of licenses by Medplus Health Services subsidiary, according to a regulatory filing with the exchanges.

As of 11.05am, shares of the company were trading at Rs 731, lower by 2.06 percent, on the NSE.

Earlier this year, Nippon India MF, the Government of Singapore, Steadview, and Fidelity picked up 6.5 percent stake in the company, or 77.87 lakh shares of Medplus Health Services. This deal was executed at a price range of Rs 856.79-862 per share.

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The development took place after early investors Lavender Rose Investment and PI (Premji Invest) Opportunities Fund offloaded 70 lakh shares each in August through open market transactions worth Rs 1,236 crore. The shares were sold at a price range of Rs 861.68-861.93. They collectively sold 11.7 percent stake in the company.

The share sale reduced the shareholding of Lavender Rose Investment and PI Opportunities Fund to 11.34 percent and 8.21 percent.

So far in 2023, shares of Medplus Health Services have surged around 18.2 percent, while the benchmark Nifty 50 has given investors returns of 15.5 percent.

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