January 14, 2024 : Medi Assist Healthcare Services, a prominent third-party insurance administrator, is set to open its Initial Public Offering (IPO) for subscriptions starting January 15. The company, covering over 18,000 hospitals across 1,069 cities and 31 states, has gained attention with its ₹1,172 crore IPO. Before considering participation, potential investors should be aware of crucial details and factors.
Important Details
Here are the key details you need to know before considering investment:
| Company | Medi Assist Healthcare Services |
|---|---|
| IPO Opening Date | January 15, 2024 |
| IPO Closing Date | January 17, 2024 |
| Type of IPO | Offer for Sale (OFS) |
| Total Equity Shares | 2.8 Crore |
| Price Band | ₹397-418 per share |
| Expected Listing Date | January 22, 2024 |
| Grey Market Premium (GMP) | ₹50 |
| Listing Expected Price | ₹468 per share |
Understanding the IPO
An IPO, or Initial Public Offering, is when a company’s promoters seek to raise additional funds by offering shares to the public for the first time. In the case of Medi Assist Healthcare Services, the IPO is entirely an Offer for Sale, with promoters and investors collectively selling 2.8 crore equity shares.
Stakeholders and Shareholding
The selling promoters include company chairman Vikram Jit Singh Chhatwal, Medimatter Health Management, Bessemer Health Capital, and Investcorp Private Equity Fund. Investcorp, the single largest non-promoter shareholder, is set to exit with a profit of Rs 536.6 crore.
Price Band and Grey Market Premium
The IPO’s price band is fixed at ₹397-418 per share, with the grey market reflecting a premium of ₹50. Investors anticipate the listing price to be around ₹468 per share, slated for January 22, 2024.
About Medi Assist Healthcare Services
Founded in 2002 by Sakshi Kabra in Bengaluru, the company boasts a vast network of hospitals and has 35 insurers as partners. Its primary clientele includes insurers, holding a significant 30% market share in group covers/corporate, with an overall market share of around 7%.
Considerations for Investors
Before diving into the IPO, potential investors should weigh certain factors:
- Business Model: Understand the company’s business model, focusing on its clientele, market share, and growth prospects.
- Financial Performance: Analyze the financial health of the company, considering past performance and future projections.
- Promoter Exit: Note that Investcorp, along with other promoters, will be exiting the company. Evaluate the impact of this on the company’s stability and future strategies.
- Grey Market Premium: While a premium in the grey market suggests demand, it’s essential to assess whether the premium is sustainable post-listing.
- Listing Date Expectations: Be aware of the expected listing date and potential market conditions.
Conclusion
Investing in an IPO requires careful consideration. As the Medi Assist Healthcare Services IPO opens, potential investors should conduct thorough research, considering the company’s fundamentals, financials, and the broader market scenario. It’s advisable to consult financial experts and stay updated with market trends for informed decision-making.
