Medi Assist Healthcare IPO: GMP drops to 15% ahead of issue opening next week

Medi Assist Healthcare IPO: The Rs 1,171.58 crore public offer is set to open on January 15 and will close on January 17

Medi Assist Healthcare’s grey market premium (GMP) slipped to 15 percent on January 12 from 19 percent, as the opening of its Rs 1,171.58-crore initial public offering (IPO) draws closer.

According to Invsetorgain data, the share was trading at Rs 482 in the grey market against the issue price of Rs 418.

The grey market is an unofficial trading ecosystem where shares start trading well before the allotment of shares in an IPO and continue to till the stock lists on bourses.​ Investors largely track the grey market to get an idea of the listing price.

The IPO will open on January 15 and will close on January 17. Promoter Bessemer India Capital Holdings II and investor Investcorp Private Equity Fund I reduced their stake in Medi Assist Healthcare Services ahead of the IPO, selling shares worth Rs 536 crore on January 10.

Also Read: Medi Assist Healthcare Services IPO | 10 key things to know before buying the Rs 1,172-crore public issue

The price band of the issue, which is entirely an offer-for-sale of 2.8 crore shares, has been fixed at Rs 397-418 a share.

Among promoters, Dr Vikram Jit Singh Chhatwal will sell 25.39 lakh shares, Medimatter Health Management 1.24 crore (including 5.37 lakh shares held jointly with Chhatwal) and Bessemer Health Capital LLC 66.06 lakh shares. Investor Investcorp Private Equity Fund I will offload around 62.8 lakh shares.

Also Read: Medi Assist IPO | Bessemer India, Investcorp sell Rs 536 crore shares ahead of anchor book round, IPO opening

The company reported an 18.7 percent on-year growth in consolidated net profit at Rs 75.31 crore on strong topline and operating margin performance in FY23. Revenue grew by 28.2 percent to Rs 504.9 crore.

However, PAT for the six months ended September FY24 fell 34 percent on-year to Rs 24.3 crore due to dismal margin performance and higher other expenses. Subsidiaries Medi Assist TPA, Medvantage TPA and Raksha TPA contributed 92.98 percent to the company's revenue from contracts with customers in the first half of FY24.

Also Read: Medi Assist Healthcare Services IPO: Check issue details, opening date, offer size

The basis of allotment of shares will be finalised by January 18 and the stock is expected to list on NSE and BSE on January 22.

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