MedPlus: MedPlus promoter to refinance debt held by Warburg Pincus

Mumbai: Madhukar Reddy Gangadi, the promoter of the second-largest pharmacy retail chain MedPlus Health Services, is set to refinance the debt held by private equity firm Warburg Pincus, said sources familiar with the matter.
The promoter has raised ₹350 crore in debt from Modulus Alternatives to help with the buyout. The fund, borrowed at the promoter level, is being used to refinance the debt.

Lavender Rose Investment, a Mauritius unit of Warburg Pincus, currently holds an 11.36% stake in MedPlus.


Established in 2006 by founder Madhukar Gangadi, MedPlus has grown into a network of over 4,000 outlets across 581 cities. Since its listing in 2021, the company has attracted investors like Fidelity, The Government of Singapore, Steadview Capital, and Premji Invest, and has a market cap of ₹ 8,700 crore.

“MedPlus promoter has raised private credit money from Modulus Alternatives to buy out debt from existing investor Warburg Pincus,” said a source. The money is borrowed for a tenor of 3-4 years and is priced in the mid-teens, the source said.

The loan is backed by shares held by promoters in the company and some other assets, the source added. The promoter holds around 40% of the company.

MedPlus is also planning to do a Qualified Institutional Placement (QIP) within the next 18 months to fund the next growth phase, another source said. While Modulus Alternatives spokesperson declined to comment, Madhukar Reddy confirmed that MedPlus would refinance the debt.

MedPlus Health Services offers a comprehensive range of prescription and over-the-counter medications, wellness products, and healthcare essentials.

The company has also adapted to the digital age by operating an online platform to cater to the evolving needs of customers.

Modulus Alternatives, part of the Centrum group, focuses on mid-market and performing credit opportunities in the Indian private credit space. Modulus Alternatives manages two category II alternative investment funds (AIFs). With an invested capital corpus exceeding ₹2,306 crore, it has returned more than ₹900 crore to its investors, making 19 investments and exiting 10. From Fund I, the fund has generated a gross IRR of over 16%, by investing in companies like Jindal Power & Steel, Zuari Agro Chemicals, Strides Pharma, NDR Warehousing, and DCW.

The investment in MedPlus is the 19th from Modulus Alternatives, and fourth from its second private credit fund, India Credit Opportunities Fund II. Previous investments from the fund include Shivam Auto, a mix of debt and equity, as reported earlier.

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