Introduction:
After a stellar 2023, which saw more than 60 mainboard Initial Public Offerings (IPOs) hitting the D-street, the momentum has shifted to 2024. Medi Assist Healthcare Services Limited is among the slew of companies launching their IPOs in January. The health tech and insurance tech companies plan to raise 1,171.58 crores through an offer for sale of around 280.28 lakh equity shares.
Medi Assist Healthcare Services IPO will open for subscription on Monday, 15 January 2024, and closes on Wednesday, 17 January 2024. It will be a book-building IPO, with the price band being set in the range of Rs. 397 to Rs. 418 per share. Continue reading to learn more details about the IPO, including lot size, listing date, face value, Grey Market premium (GMP) and more.
About Medi Assist Healthcare Services Limited
Incorporated in 2002, Medi Assist Healthcare Services Limited offers third-party administration services to insurance companies via its wholly-owned subsidiaries, namely Medi Assist TPA, Medvantage TPA, and Raksha TPA. The company oversees health benefits for employers, retail members, and public health schemes, primarily serving as the main service provider for the insurance companies that introduce these health insurance schemes. For instance, the company ensures cashless hospitalisation services promised by insurers at its network hospitals.
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As of 31 March 2023, the client portfolio of Medi Assist Healthcare Services Limited includes Group Accounts (74%), retail members (11%), government schemes (11%), and other contractual agreements. The company has a pan-India healthcare network comprising 18,750 hospitals across 1,069 cities and towns. For the financial year 2023, the company successfully processed 5.27 million claims, comprising 2.44 million in-patient claims and 2.83 million out-patient claims.
Key Strengths of the Company
Below are the primary strengths of Medi Assist Healthcare Services Limited (as stated in the company’s Red Herring Prospectus):
- It is a reputed and well-established third-party healthcare administration service provider in India
- Boasts an extensive network of 18,750 hospitals across 1,069 cities and towns
- Enjoys long-standing relationships with the most reputed health insurance providers
- Capacity to negotiate and secure discounted rates as well as preferential packages with hospitals
- Proven track record of seamless acquisitions and business expansion
Key Risks or Weaknesses Highlighted
Below are the key risks or weaknesses associated with Medi Assist Healthcare Services Limited:
- The company services a significant portion of the revenue from limited clients
- There are ongoing legal and regulatory proceedings involving the company’s promoters
- Business operandi is subject to IRDAI (Insurance Regulatory and Development Authority of India) regulations
Core Financials of the Company
Analysing the issuing company’s financials is crucial when investing in an IPO. The financials of Medi Assist Healthcare Services Limited paint a robust picture, with the company’s net worth improving gradually from Rs. 293 crores in FY21 to Rs. 384 crores in FY23. The revenue from operations has also increased from Rs. 323 crores to Rs. 505 crores in the same period. The profit after tax (PAT) and the return of net worth for FY23 stood at Rs. 75 crores and 20%, respectively.
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The table below depicts the key financials of Medi Assist Healthcare Services Limited for the last three completed financial years:
Source – RHP dates 9 January on the SEBI website
Exciting opportunities ahead: Don’t forget to apply for Upcoming IPOs!
Details of the IPO
As mentioned before, Medi Assist Healthcare Services' IPO will open for subscription on Monday, 15 January 2024, and close on Wednesday, 17 January 2024. Retail investors can apply for a minimum of 35 shares (one lot) and in multiples thereof within the price band of Rs. 397 to Rs. 418 per share.
The table below illustrates additional IPO details:
The bottom line
Before investing in an IPO, you must analyse several key factors, including the issuing company’s financials, strengths, weaknesses, growth prospects, objectives, GMP, etc. As of 11 January 2024, the GMP of Medi Assist Healthcare Services IPO is Rs. 81, which indicates a listing gain of 19.38% on the upper price band.
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