Medi Assist Healthcare IPO lists at 11% premium; surges 24% post debut

Medi Assist Healthcare Services, a health-tech and insurance-tech company, made a strong debut on the stock market on Tuesday, with the share price listing at a premium of 11% over the IPO price. On the BSE, the stock kicked off trading at ₹465, up 11.24% over the issue price of ₹418 per share. On the NSE, Medi Assist shares listed 10% higher than the IPO price at ₹460 apiece.

Post listing, shares of Medi Assist gained as much as 23.9% to hit a high of ₹518 on the NSE, while it touched a high of ₹509.6 on the BSE. The market capitalisation of the insurance-tech company stood at ₹3,253 crore at the time of reporting.

Ahead of listing on the domestic bourses, Medi Assist Healthcare was commanding a grey market premium (GMP) of ₹34 over the issue price in the unofficial market. Before the opening of the IPO, the GMP of the health insurance third-party administrator surged to ₹80 on January 10, while it dropped to ₹27 on January 17.

“This successful debut paints a brighter picture for Medi Assist, but cautious optimism is still advised. Thus, investors may book this listing gain and exit their holdings; however, those who want to hold positions are advised to keep a stop loss at issue price,” says Shivani Nyati, Head of Wealth, Swastika Investmart Ltd.

“Medi Assist Healthcare Services is a well-established health-tech and insurance-tech company, but the identified concerns regarding client concentration and dependence on subsidiaries still require ongoing monitoring,” Nyati adds.

Medi Assist raised ₹1,171.6 crore via the public offer, which opened for subscription between January 15 to January 17. The IPO was completely an offer for sale (OFS) of 2.8 crore shares by existing shareholders at a price band of ₹397-418 per share. The lot size was 35 shares and multiple thereafter, which means the minimum amount for retail investors was ₹14,630.

The Medi Assist Healthcare IPO was subscribed 16.25 times, with the quota reserved for retail investors booking by 3.19 times. The portion set aside for qualified institutional buyers (QIB) was booked 40.14 times and that of non institutional investors (NIIs) by 14.85 times.

A day ahead of the opening of the IPO, Medi Assist raised ₹351.5 crore through its anchor book issue by allocating 84,08,449 equity shares at ₹418 per share. The anchor book saw participation from investors such as Nomura Trust, Goldman Sachs, Ashoka Whiteoak, Pinebridge Global Funds, Troo Capital, and HSBC.

Incorporated in June 2002, the Bengaluru-headquartered company offers medical insurance and cashless hospitalisation through a network of healthcare service providers. The company also acts as a mediator between general and health insurance companies and their insured members; insurance companies and healthcare providers (such as hospitals); and the Government and beneficiaries of public health schemes. 

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)