Medi Assist Healthcare IPO: Issue Subscribed 16.24 Times; QIB Portion Booked 40.14 Times on Final Day

Medi Assist Healthcare, the insurance-tech company, opened its initial public offering (IPO) on January 15, 2024. The company has set the IPO price band at Rs 397 to Rs 418 per equity share. The issue is scheduled to close on January 17, 2024.

Investors have the opportunity to bid for 35 shares in one lot and multiples thereafter. Qualified institutional buyers (QIBs) have a reservation of 50 percent of the offer, while 35 percent is allocated for retail investors, and the remaining 15 percent is designated for non-institutional investors.

About the company

The company, through our wholly owned subsidiaries Medi Assist TPA, Medvantage TPA, and Raksha TPA, provides third-party administration services to insurance companies. As of September 30, 2023, our network includes over 18,000 hospitals across 1,069 cities and towns in 31 states.

In India, Medi Assist partners with group accounts (employers) to administer their employee health insurance plans. We also collaborate with insurers to manage health insurance plans for retail customers and publicly funded health schemes (Government Schemes).

At 4:48 PM, investors had subscribed to the IPO 16.23 times over, bidding for 1.96 crore shares. The retail segment saw a subscription of 3.17 times, while the Non-Institutional Investors (NII) segment was subscribed 14.84 times. Qualified Institutional Buyers (QIBs) subscribed 40.14 times for their portion, bidding for 22.49 crore shares against the available 56.05 lakh shares.

Also read: Why HDFC Bank Share Price Crashed? Biggest Single Day Fall In 3 Years

Price Band

The insurance firm has fixed the IPO price band at Rs 397 to Rs 418 per equity share.

Issue Size

The issue consists solely of an offer-for-sale (OFS) by various existing shareholders, including promoters and investors, who plan to sell 2.8 crore shares of the company. Therefore, the selling shareholders will receive the net proceeds, excluding the IPO expenses.

Company Financials

For the six months ending September FY24, the company reported a consolidated net profit of Rs 24.3 crore, reflecting a decrease from Rs 36.8 crore in the corresponding period last year. However, the company’s revenue during the same period increased to Rs 301.9 crore from Rs 243.5 crore. In the six-month revenue for FY24, subsidiary Medi Assist TPA accounted for Rs 271.4 crore, Medvantage TPA contributed Rs 2.96 crore, and Raksha TPA contributed Rs 6.4 crore.

IPO Reserve Portion

Qualified institutional buyers (QIBs): 50 percent of the shares in the public issue.
Retail Investors: 35 percent of the shares in the issue
Non-institutional investors: 15 percent of the reserved portion.

Objectives of the Issue

The Rs 1,171 crore IPO is entirely an offer-for-sale (OFS), which means the funds raised will go to the selling shareholders, and the company itself won’t receive any proceeds from the IPO.

Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment decisions.