Medi Assist IPO opens today. GMP, subscription status, review, other details. Buy or not?

Medi Assist Healthcare IPO: The mainboard initial public offering (IPO) of the insurance-tech company has opened today and it will remain open till 17th January 2024. The company is a third-party administration (TPA) services provider to insurance companies and offers medical insurance and cashless hospitalization through a network of healthcare service providers. The insurance-tech company has fixed Medi Assist IPO price band at ₹397 to ₹418 per equity share. The book build issue is proposed for listing on BSE and NSE.

Meanwhile, shares of Medi Assist Healthcare Limited have been available for trade in the grey market since the weekend. According to stock market observers, Medi Assist Healthcare shares are available at a premium of ₹32 in the grey market today.

Medi Assist IPO subscription status

By 2:08 PM on day one of bidding, the public issue got subscribed 0.22 times whereas its retail portion got subscribed 0.41 times. The NII portion of the book build issue got filled 0.09 times.

Important Medi Assist Healthcare IPO details

1] Medi Assist IPO GMP: Shares of the health-tech company are available at a premium of ₹32 in the grey market today.

2] Medi Assist IPO date: The public issue has opened today and it will remain open for bidding till 17th January 2024.

3] Medi Assist IPO price: The health-tech company has a fixed price band of the book build issue at ₹397 to ₹418 per equity share.

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4] Medi Assist IPO size: The book build issue aims to generate ₹1,171.58 crore from this public issue, which is a 100 per cent offer for sale (OFS).

5] Medi Assist IPO lot size: A bidder will be able to apply in lots and one lot of the book build issue will comprise 35 mcompany shares.

Medi Assist Healthcare IPO details:

6] Medi Assist IPO allotment date: Finalisation of the share allocation is most likely on 18th January 2024 i.e. on Thursday next week.

7] Medi Assist IPO registrar: Link Intime India Private Limited has been appointed as the official registrar of this public issue.

8] Medi Assist IPO listing: The public issue is proposed for listing on BSE and NSE.

9] Medi Assist IPO listing date: The public issue may be listed on 22nd January 2024.

Medi Assist IPO: Should you subscribe?

10] Medi Assist IPO review: Giving 'subscribe' tag to the book build issue, Choice Broking report says, "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. At a higher price band, MAHSL is demanding a P/E multiple of 34.8x (to its TTM EPS of Rs. 12), which is at a discount to the peer average of 42.6x. Thus the issue is attractively priced. MAHSL is catering to the fast-growing health insurance sector. Thus, considering its dominant share in the TPA market, consistent financial performance, healthy cash flow generation, and dividend payout, we assign a “SUBSCRIBE” rating for the issue."

On whether Medi Assist IPO is good or bad for a primary market investor, Gaurav Goel, Founder & Director at Fynocrat Technologies said, "We believe this IPO can be an alternative way to play the long-term health insurance growth in the country. Medi Assist is one of the leading TPA players and the first third-party administrator (TPA) to come with an IPO, which opens on January 15. The issue is an OFS where the promoter stake will stand at 46 per cent from 77 per cent pre-issue. Medi Assist is the leader in the industry with 42 per cent of the TPA market by premiums, which implies a 21 per cent share in overall health insurance. By profits as well, Medi Assist accounts for 56 per cent of the TPA industry profits with its healthy margin profile. Considering the strong growth prospects, and cost leadership which ensures a leading market share, investors can subscribe to the issue."

BP Equities, Canara Bank Securities, and Ventura Securities have also given an 'apply' tag to the Medi Assist healthcare IPPo while Swastika Investmart has remained 'neutral' on the book build issue. SBICAP Securities has not rated the public issue.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decision.