Medi Assist Healthcare Services lists at 11% premium at Rs 465 per share on the BSE

Medi Assist Healthcare Services Limited is a health-tech and insurance-tech company that manages health benefits for employers, retail members, and public health schemes, primarily serving insurance companies, it debuted on the Indian stock market today.

Upon its debut on the BSE, the stock opened at Rs 465 per share, reflecting an 11.24% premium compared to the final issue price of Rs 418 per share. Meanwhile, the stock opened at Rs 460 per share on the NSE, reflecting a premium of 10%. The market capitalisation of the company stands at Rs 3201.95 crore.

IPO Proceeds 

The company will not receive any proceeds from the offer. All proceeds from the offer will go to the selling shareholders, in proportion to the Equity Shares they offered in the Offer for Sale.

Company profile

Medi Assist Healthcare Services Limited is a health-tech and insurance-tech company that manages health benefits for employers, retail members, and public health schemes, primarily serving insurance companies.

Medi Assist offers medical insurance and cashless hospitalization 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. As of March 31, 2023, Medi Assist Healthcare had collaborated with 36 insurance companies in India and worldwide.

Subscription details: 

On January 17, 2024, the final day of the IPO window, the IPO witnessed an impressive response, with a subscription rate of 16.25 times. The public issue received remarkable interest, with the retail category being subscribed 3.19 times, the QIB category achieving a subscription rate of 40.14 times, and the NII category reaching 14.85 times.

The company attracted Rs 351.47 crore from various anchor investors by allocating 84.08 lakh equity shares at Rs 418 per share. The complete lock-in period for these anchor investors ends on June 03, 2024.

The IPO price range was set between Rs 397 and Rs 418, with a face value of Rs 5 per share and a lot size of 35 shares. The total size of the company’s IPO was Rs 1,171.58 crore, and the final share issue price was fixed at Rs 418 each.

Financial Performance:

Conclusion: 

The key dilemma for investors lies in whether to hold onto their shares. Those who applied for the IPO solely intending to capitalise on listing gains have earned an impressive 11% return over its final issue price on the listing day itself. Investors who applied for the IPO purely for listing gains may consider closing their positions. Conversely, investors with a higher risk tolerance might opt to hold onto their shares for the medium to long term, as this strategy could potentially yield benefits over time.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.