Unlisted shares of Medi Assist Healthcare Services Ltd continue to trade Rs 27 higher in the grey market, which is a 6.46 per cent listing gain from the public issue
Medi Assist Healthcare IPO: The initial public offering of Medi Assist Healthcare Services Ltd, which is going to be closed on Wednesday, has received a muted response from investors. Till 12:17 pm on the final day of bidding on Wednesday, the IPO has received 2.15 times subscription, garnering bids for 4,22,66,350 shares as against 1,96,19,719 shares on offer.
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The Rs 1,171.58-crore IPO was opened for public subscription on Monday, January 15.
The retail category has been subscribed 2.27 times, while the non-institutional investor (NII) quota has been subscribed 3.55 times. The qualified institutional buyers (QIB) received 0.90 times subscription.
The price band of the IPO has been fixed at Rs 397 to Rs 418 per share. Once the IPO subscription dates are over, the allotment will take place on January 18, while its listing will take place on both BSE and NSE on January 22.
Medi Assist Healthcare Services offers third-party administration services to insurance firms.
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Medi Assist Healthcare IPO GMP Today
According to market observers, unlisted shares of Medi Assist Healthcare Services Ltd continue to trade Rs 27 higher in the grey market as compared with its issue price. The Rs 27 grey market premium or GMP means the grey market is expecting a 6.46 per cent listing gain from the public issue. The GMP is based on market sentiments and keeps changing.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Medi Assist Healthcare IPO: Should You Subscribe?
Giving a ‘Subscribe’ rating to the IPO, brokerage Choice Broking in a note said, “At a higher price band, MAHSL is demanding a P/E (price-earnings) multiple of 34.8 times (to its TTM EPS of ₹12), which is at a discount to the peer average of 42.6 times. Thus the issue is attractively priced.”
It said there are no comparable peers having business model similar to MAHSL. Considering the nature of the operations, the above peers are considered only for benchmarking the demanded valuation.
Another brokerage Globe Capital has recommended to subscribe to the IPO for medium to long term. It said Medi Assist is one-of-a-kind operator in the third-party administration industry in the insurance sector, and its reach is expanding as more healthcare contracts are signed due to increased knowledge.
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Medi Assist Healthcare IPO Details
The maiden public issue is entirely an offer for sale (OFS) of 2,80,28,168 (or 2.8 crore) equity shares of Medi Assist by promoters and existing shareholders.
As a part of the OFS, promoters — Vikram Jit Singh Chhatwal, Medimatter Health Management and Bessemer Health Capital LLC — will offload shares, besides investor Investcorp Private Equity Fund I will offer shares among others.
Since the issue is completely an OFS, the company will not receive any proceeds and all the funds will go to the selling shareholders.
At the upper end of the price band, the issue is expected to fetch Rs 1,171.58 crore.
Half of the issue has been reserved for qualified institutional investors, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors. Investors can bids for a minimum of 35 equity shares and in multiples of 35 equity shares thereafter.
Bengaluru-based Medi Assist is a health-tech and insurtech company focused on administering health benefits across employers, retail members, and public health schemes.
The company’s primary clients are insurance companies. It also serves as an intermediary between general and health insurance companies, the insured member’s insurance companies and healthcare providers (such as hospitals), and the government and beneficiaries of public health schemes.
Axis Capital, Nuvama Wealth Management, IIFL Securities, and SBI Capital Markets have been appointed as merchant bankers to advise the company on the IPO. The equity shares of the company will be listed on the BSE and NSE.
