BASIS FOR OFFER PRICE

The Offer Price has been determined by our Company and the Investor Selling Shareholder, in consultation with the BRLMs,
on the basis of assessment of market demand for the Equity Shares offered through the Book Building Process and on the basis
of quantitative and qualitative factors as described below. The face value of the Equity Shares is 22 each and the Offer Price is
2796 and Floor Price is 390 times the face value and the Cap Price is 398 times the face value. Investors should also see “Risk
Factors”, “Summary of Financial Information”, “Our Business”, “Financial Statements”, and “Management's Discussion and
Analysis of Financial Condition and Results of Operations” on pages 29, 60, 147, 209 and 283, respectively, to have an informed
view before making an investment decision.

Qualitative Factors

Some of the qualitative factors and our strengths which form the basis for computing the Offer Price are:

. India’s Second Largest Pharmacy Retailer;

. Established Brand and Value Proposition to Customers;

. Successful Track Record of Expansion Using a Distinct Cluster-based and Replicable Store Unit Expansion Approach;
. High Density Store Network Enhancing Omni-channel Proposition;

. Lean Cost Structure and Technology Driven Operations; and

. Well Qualified, Experienced and Entrepreneurial Board and Senior Management Team.

For details, see “Our Business — Strengths” on page 149.
Quantitative Factors

Some of the information presented below relating to our Company is derived from the Restated Consolidated Financial
Information. For details, see “Financial Statements” and “Other Financial Information” on page 209 and 280.

Some of the quantitative factors which may form the basis for computing the Offer Price are as follows:

 

 

 

 

 

 

 

A. Basic and Diluted Earnings Per Share (“EPS”) (face value of each Equity Share is %2):
Fiscal Basic EPS (in%)_| Diluted EPS (in 2) Weight
March 31, 2021 5.99 5.75 3
March 31, 2020 0.21 0.20 o
March 31, 2019 1.33 1.27 1
Weighted Average 3.29 3.15 2
Six month period ended September 30, 2021" 6.16 5.99 z
Six month period ended September 30, 2020* 2.18 2.09 =

 

 

 

 

 

 

“Not annualized

NOTES:

1. Weighted average = Aggregate of year/ period-wise weighted EPS divided by the aggregate of weights i.e. (EPS x Weight) for each year
period /Total of weights.

2. The face value of each Equity Share is @ 2 each.

3. Earnings per Share (2) = Profit attributable to the owners of the Company for the year/period /Weighted Average No. of shares at the end of
the year/ period

4. Basic and diluted earnings per share: Basic and diluted earnings per share are computed in accordance with Indian Accounting Standard 33
notified under the Companies (Indian Accounting Standards) Rules of 2015 (as amended).

 

 

 

B. Price/Earning (“P/E”) ratio in relation to Price Band of 780 to 3796 per Equity Share:
Particulars P/E at the Floor Price (number | P/E at the Cap Price (number
of times) of times)
Based on basic EPS for year ended March 31, 2021 130.22 132.89
Based on diluted EPS for year ended March 31, 2021 135.65 138.43

 

 

 

 

 

Industry Peer Group P/E ratio

Not applicable as there are no listed companies in India that engage in a business similar to that of our Company.
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