Medi Assist Healthcare Services recently debuted in the stock market, opening at a premium of 11.24% over its initial public offering (IPO) price on January 23. The opening prices were Rs 460 on the National Stock Exchange (NSE) and Rs 465 on the Bombay Stock Exchange (BSE), compared to the IPO price of Rs 418. Before its official listing, the stock was already trading at a premium of 8% in the grey market, a non-official market where shares are traded pre-IPO allotment until the listing day. Investors often monitor this grey market premium to anticipate the listing price.
The IPO of Medi Assist Healthcare Services, which was solely an offer for sale, was met with significant demand, being oversubscribed 16.25 times. It attracted bids for 31.87 crore shares against an issue size of 1.96 crore. The retail segment subscribed 3.19 times, while qualified institutional buyers (QIB) and high-net-worth individuals (HNI) subscribed 14.85 times and 40.14 times their quotas, respectively. The IPO was open from January 15 to January 17, and the company raised Rs 1,171.58 crore by offering 2.8 crore shares, including an anchor portion, with a price range of Rs 397–418 per share.
Axis Bank, IIFL Securities, Nuvama Wealth Management, and SBI Capital Markets were the book-running lead managers for the IPO, and Link Intime India served as the registrar.
In terms of financial performance, Medi Assist reported a robust year-over-year growth of 18.7% in consolidated net profit, amounting to Rs 75.31 crore for the fiscal year ending in March 2023. This was driven by solid revenue growth of 28.2%, reaching Rs 504.9 crore, and an increase in EBITDA by 30.8% to Rs 119.35 crore. The company also improved its operating margin, which expanded by 40 basis points to 23.6%.
Medi Assist Healthcare provides third-party administration (TPA) services to insurance companies through its subsidiaries, including Medi Assist TPA, Advantage TPA, and Raksha TPA. TPAs process health claims on behalf of insurance companies and offer services such as policy administration, customer support, and network management. They act as intermediaries connecting insurers, healthcare providers, and policyholders.
