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Updated January 23rd, 2024 at 10:59 IST

Medi Assist Healthcare stock lists at 11% premium to IPO price

The stock opened at Rs 460 on the National Stock Exchange (NSE) and Rs 465 on the Bombay Stock Exchange (BSE), from issue price of Rs 418.

Business Desk
Medi Assist
Medi Assist | Image:Unsplash
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Medi Assit listing: Medi Assist Healthcare Services made a strong stock market debut on Tuesday, January 23, listing at an 11.24 per cent premium over its initial public offering (IPO) price on January 23.

The stock opened at Rs 460 on the National Stock Exchange (NSE) and Rs 465 on the Bombay Stock Exchange (BSE), from issue price of Rs 418.

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Shivani Nyati, Head of Wealth, Swastika Investmart Ltd said, “Medi Assist Healthcare Services made a strong debut in the secondary market at Rs 460, with a listing premium of around 11 per cent over its issue price of Rs 418. This impressive performance followed an oversubscribed IPO by 16.25 times, further adding to the positive sentiment surrounding the health-tech firm's prospects. Medi Assist Healthcare Services Limited 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.”

Leading up to the listing, the stock had been trading at an 8 per cent premium in the grey market, an unofficial platform where shares are traded before official IPO allotment and continue until the listing day. Investors often use the grey market premium (GMP) as an indicator of the potential listing price.

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Medi Assist Healthcare Services' IPO was solely of an offer for sale (OFS) and saw robust demand for its shares as the IPO was oversubscribed 16.25 times.

Bids were received for 31.87 crore shares against the issue size of 1.96 crore. The retail segment was subscribed 3.19 times, qualified institutional buyers (QIB) portion was booked 14.85 times and shares set aside for high net worth individuals (HNI) was subscribed 40.14 times.

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The IPO, which was open between January 15 to January 17, successfully raised Rs 1,171.58 crore through the offer-for-sale of 2.8 crore shares, including the anchor portion. The price band for the issue was set at Rs 397-418 per share.

Axis Bank, IIFL Securities, Nuvama Wealth Management, and SBI Capital Markets served as the book-running lead managers for the IPO, while Link Intime India acted as the registrar.

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”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,” added Nyati.

In its financial performance for the year ended March 2023, Medi Assist reported 18.7 per cent year-on-year (YoY) growth in consolidated net profit to Rs 75.3 crore.

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The company achieved a 28.2 per cent growth in revenue, amounting to Rs 504.9 crore.

Its operating profit, also known as earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 30.8 per cent to Rs 119.4 crore, accompanied by a margin expansion of 40 basis points, reaching 23.6 per cent for the year.

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Medi Assist Healthcare Services specialises in providing third-party administration services to insurance companies through its wholly-owned subsidiaries—Medi Assist TPA, Medvantage TPA, and Raksha TPA.

As of 10:46 am, shares of Medi Assist were trading 1.44 per cent higher at Rs 471.70 per share.

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Published January 23rd, 2024 at 10:59 IST

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