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10 January 2024

Medi Assist Healthcare IPO: Facilitating Health Solutions Through Innovation

Introduction:

Medi Assist Healthcare IPO, a book-built issue amounting to Rs 1,171.58 crores, is exclusively an offer for sale of 2.8 crore shares. The subscription window opens on January 15, 2024, and concludes on January 17, 2024. The allotment results are anticipated to be declared on Thursday, January 18, 2024. The listing on BSE and NSE is tentatively scheduled for Monday, January 22, 2024.

Financial Landscape:

The IPO is priced in the range of ₹397 to ₹418 per share, with a minimum lot size of 35 shares. Retail investors are required to invest a minimum of ₹14,630. As of the IPO date, the shareholding pre-issue and post-issue remains constant at 68,859,212 shares.

Key IPO Metrics:

- IPO Duration: January 15, 2024, to January 17, 2024
- Listing Date: January 22, 2024 (tentative)
- Face Value: ₹5 per share
- Price Band: ₹397 to ₹418 per share
- Lot Size: 35 Shares
- Total Issue Size: 28,028,168 shares, aggregating up to ₹1,171.58 Cr
- Offer for Sale: 28,028,168 shares of ₹5, aggregating up to ₹1,171.58 Cr
- Issue Type: Book Built Issue IPO
- Listing At: BSE, NSE

Equity Landscape:

The promoters of the company, including Dr. Vikram Jit Singh Chhatwal, Medimatter Health Management Private Limited, and Bessemer India Capital Holding II Ltd, will see their shareholding decrease from 67.55% to 45.75% post-issue.

IPO Reservation Dynamics:

The IPO offers 28,028,168 shares, with allocations of 20.00% to QIB, 15.00% to NII, 35.00% to RII, and 30.00% to Anchor investors. Retail investors will receive a minimum of 35 shares, while sNII and bNII will receive a minimum of 490 shares. In case of oversubscription, 280,281 RIIs will be allotted.

IPO Timeline Highlights:

- IPO Open Date: Monday, January 15, 2024
- IPO Close Date: Wednesday, January 17, 2024
- Basis of Allotment: Thursday, January 18, 2024
- Initiation of Refunds: Friday, January 19, 2024
- Credit of Shares to Demat: Friday, January 19, 2024
- Listing Date: Monday, January 22, 2024
- Cut-off time for UPI mandate confirmation: 5 PM on January 17, 2024

Lot Size Landscape:

Investors can bid for a minimum of 35 shares and in multiples thereof. The table below outlines the investment parameters for retail investors and HNIs:

Application	Lots	Shares	Amount
Retail (Min)	1	35	₹14,630
Retail (Max)	13	455	₹190,190
S-HNI (Min)	14	490	₹204,820
S-HNI (Max)	68	2,380	₹994,840
B-HNI (Min)	69	2,415	₹1,009,470

Company Profile:

Incorporated in June 2002, Medi Assist Healthcare Services Limited stands as a health-tech and insurance-tech company, playing a pivotal role in managing health benefits for employers, retail members, and public health schemes. The company is a key player in the third-party administration business within the insurance segment. It acts as a mediator between insurance companies, healthcare providers, and the government.
As of March 31, 2023, Medi Assist Healthcare collaborated with 36 insurance companies in India and globally. The company's revenue from the retail portfolio constituted 11.29% of the total revenue from customer contracts for the financial year 2023.

Financial Performance Overview:

As of September 30, 2023:

- Assets: ₹802.62 Crores
- Revenue: ₹312.03 Crores
- Profit After Tax: ₹45.26 Crores
- Net Worth: ₹416.64 Crores
- Reserves and Surplus: ₹102.03 Crores

Key Financial Indicators:

- ROCE: 24.95%
- RoNW: 19.63%
- P/BV: 0 (Pre-IPO)
- EPS (Rs): 13.15
- P/E (x): 31.8

Objects of the Issue:

The primary objective of the IPO is to achieve the benefits of listing the Equity Shares on the Stock Exchanges. The company anticipates enhanced visibility, brand recognition, and liquidity for its existing shareholders. Notably, all proceeds from the IPO will go to the selling shareholders, and the company will not receive any proceeds.

Expert Analysis:

The company's scope is broadening with increasing healthcare business engagements due to rising awareness. The company is expected to attract attention as a first mover in this segment, making it a potentially rewarding investment for medium to long-term investors.

IPO Subscription Status:

As of January 15, 2024 (Day 1), the Medi Assist Healthcare IPO is subscribed 0.55 times. The retail category is subscribed 0.90 times, QIB category at 0.00 times, and NII category at 0.45 times (0.36 times for bids above ₹10L and 0.63 times for bids below ₹10L).

Note: All financial figures are in INR (Indian Rupees), and market-related data is as of January 15, 2024.

GMP Introduction:

Investors eagerly anticipating the listing of Medi Assist Healthcare IPO have been closely monitoring the Grey Market Premium (GMP) trends. The GMP, reflecting the demand for the IPO shares before the official listing, has shown significant fluctuations over the last 14 sessions. This daily update aims to provide a comprehensive overview of the GMP movement and its potential impact on the estimated listing price.

Latest GMP Update:

As of January 16th, 2024, the last recorded GMP is ₹42, showcasing an upward trend. Investors are witnessing positive movement, with the expectation of a robust listing for Medi Assist Healthcare IPO. Today's GMP, coupled with the price band of ₹418.00, projects an estimated listing price of ₹460, indicating a potential gain of 10.05%.

Day-wise GMP Trends:

Date	GMP	Estimated Listing Price	Remarks
January 15, 2024	₹33	₹451 (7.89% gain)	The GMP shows an upward trend, contributing to a positive market sentiment.
January 14, 2024	₹30	₹448 (7.18% gain)	The GMP remains stable, reflecting steady interest in the IPO.
January 13, 2024	₹30	₹448 (7.18% gain)	Despite a slight decrease, the GMP remains favorable for potential investors.
January 12, 2024	₹54	₹472 (12.92% gain)	The GMP experiences a decline, signaling a potential adjustment in investor sentiment.
January 11, 2024	₹64	₹482 (15.31% gain)	A notable decrease in GMP suggests a more cautious market approach.
January 10, 2024	₹81	₹499 (19.38% gain)	GMP registers a significant increase, contributing to a positive outlook.