January 15, 2023

New Delhi, India

Medi Assist Healthcare IPO

Medi Assist Healthcare, a key player in insurance tech, has opened its Initial Public Offering (IPO), generating buzz in the financial markets. Let’s delve into the analysis of its business, financial performance, and investor response.

Business Overview:

Medi Assist Healthcare operates as a third-party administration (TPA) services provider, offering medical insurance and cashless hospitalization. The company facilitates insurance processes for various insurance companies.

Financial Performance:

Quality: The company showcases robust financial health with a three-year average Return on Equity (ROE) of 23.7% and Return on Capital Employed (ROCE) of 18.0%. In FY23, these figures further improved to 27.4% and 20.8%, respectively.

Growth: Medi Assist Healthcare has demonstrated significant growth, with a topline increase of 28.2% in FY23 and 22% in FY22, indicating a positive trajectory in its business operations.

IPO Details:

Price Band: Investors can participate in the IPO at a price range of ₹397 to ₹418 per equity share.

Issue Size: The IPO aims to generate ₹1,171.58 crore through a 100% offer for sale (OFS).

Subscription Status: As of day one, the IPO is subscribed 0.22 times overall, with the retail portion at 0.41 times and the NII portion at 0.09 times.

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Grey Market Premium (GMP):

Shares of Medi Assist Healthcare are currently available at a premium of ₹32 in the grey market, reflecting positive investor sentiment even before the IPO concludes.

Key Dates:

• The IPO will remain open for bidding until January 17, 2024.
• Share allocation is expected on January 18, 2024.
• The proposed listing date on BSE and NSE is January 22, 2024.

Conclusion:

Medi Assist Healthcare’s IPO has attracted attention due to its strong financials, growth trajectory, and a positive grey market premium. Investors are advised to carefully consider these factors before making investment decisions in this insurance-tech venture.

Investors are encouraged to conduct thorough due diligence and assess market conditions before participating in the IPO.

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