Medi Assist Healthcare’s initial public offering (IPO) has opened for subscription, lasting until January 17, and it involves an offer for sale (OFS) of 2.8 crore shares. The company has already secured Rs 351 crore from anchor investors, including major names like Nomura, Goldman Sachs, Pinebridge Global, Troo Capital, and HSBC.
It’s important to note that the Rs 1,171 crore IPO is entirely an offer-for-sale (OFS), meaning the funds raised will go to the selling shareholders, and the company itself won’t receive any proceeds from the IPO.
Medi Assist Healthcare specialises in providing third-party administration services to insurance companies through its wholly-owned subsidiaries. A third-party administrator handles tasks such as processing health insurance claims, policy administration, customer service, and network management.
Analysts suggest that investors consider subscribing to the IPO, pointing out the company’s strong market position as a third-party administrator, which could benefit from the growth in the health insurance industry. However, some caution is advised, considering the identified risks and the relatively higher valuation.
Choice Broking said, “Medi Assist Healthcare Services is catering to the fast-growing health insurance sector. Thus, considering its dominant share in the TPA market, consistent financial performance, healthy cash flow generation and dividend payout, we assign a “SUBSCRIBE” rating for the issue.
The IPO’s price band is set between Rs 397 and Rs 418 per share, allowing investors to bid for shares in lots of 35, with 50 per cent of the offer reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors, and 15 per cent for non-institutional investors.
For the six months ending September 2023, the company reported a 26 per cent YoY increase in total income to Rs 312 crore, while net profit declined by 39% to Rs 22.5 crore.
In the unlisted market, the Grey Market Premium (GMP) for Medi Assist Healthcare is currently reported at Rs 30. The book running lead managers for the IPO include Axis Capital, IIFL Securities, Nuvama Wealth Management, and SBI Capital Markets.
Medi Assist Healthcare IPO key details
IPO size: The IPO of Medi Assist Healthcare involves an Offer for Sale (OFS) of 2.8 crore shares, with no fresh issuance, raising Rs 351 crore from anchor investors.
Price Band: Priced between Rs 397 and Rs 418 per share, the IPO provides opportunities for investors to bid for 35 shares in 1 lot.
