Bengaluru-based Medi Assist Healthcare Services has finalised the basis of allotment of IPO shares on January 18. This was much awaited by the participants who have provided healthy support to the issue through subscription numbers.
The Rs 1,172-crore maiden public issue of the health insurance third-party administrator was subscribed 16.25 times during January 15-17 as investors picked 31.87 crore equity shares against offer size of 1.96 crore equity shares.
Qualified institutional buyers, generally known as long term investors, looked aggressive among participants as they bought 40.14 times the allotted quota, followed by non-institutional investors (high networth individuals) who picked 14.85 times the portion set aside for them, while retail investors have bid 3.19 times the reserved portion.
The Medi Assist IPO comprised of only an offer-for-sale (OFS) of 2.8 crore equity shares by the existing shareholders. The price band for the offer was Rs 397-418 per share.
Promoters Dr Vikram Jit Singh Chhatwal and Bessemer Health Capital LLC, and investor Investcorp Private Equity Fund I, the part of Bahrain-based Investcorp Group exited the company by selling their entire personal shareholding in the company through OFS.
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Vikram Jit Singh Chhatwal and his wife Savitri Choudhury-owned Medimatter Health Management, and other existing nine shareholders were also sellers in the OFS.
Investors who participated in the Bessemer India Capital-backed Medi Assist IPO can check their share allotment status either on the BSE website or the IPO registrar's portal (Link Intime India), by following few easy steps.
On the IPO registrar portal,
1) Select company 'Medi Assist Healthcare Services Limited - IPO'
2) Select and accordingly enter either 'PAN number', or 'DP/Client ID, or Account Number/IFSC,
3) Finally click on 'Submit' button
On the BSE website,
1) Select issue type 'Equity' and issue name 'Medi Assist Healthcare Services Limited'
2) Enter either 'Application number' or 'PAN number'
3) Check box (I am not a robot), and click on 'Search' button
The eligible participants will get the equity shares of Medi Assist IPO in their demat accounts by January 19, while investors can start trading in the equity shares on the bourses with effect from January 22.
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Medi Assist IPO shares were available at a 6-8 percent premium in the grey market, over the upper price band, analysts on anonymity shares. In fact, the grey market premium (GMP) has been declining as it was at around 19 percent premium before the issue opening for subscription.
The only offer-for-sale issue and no fresh issue component in the IPO along with market volatility could be some of reasons for the declining Medi Assist IPO GMP. It is available at a PE of around 35x on the basis of the last twelve months EPS, and the market capitalisation of Rs 2,878.3 crore at an issue price of Rs 418 per share. In fact, this would be the first company to list from the health insurance third-party administrator segment.
Medi Assist provides third-party administration services to insurance companies through its three wholly owned subsidiaries, Medi Assist TPA, Medvantage TPA and Raksha TPA, which accounted for 92.98 percent of revenue in the six months ended September FY24.
The TPA is an organisation that processes insurance claims on behalf of insurance companies.
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