The Bengaluru-based Medi Assist Healthcare Services Limited is launching its Initial Public Offering (IPO) on January 15, 2024. The IPO comprises entirely of an offer-for-sale of 2.8 crore equity shares worth ₹1171.58 crore of a face value of ₹5 each via book-building process. There is no fresh issuance of equity shares in this IPO, only OFS from the existing shareholders. The price band is set at ₹397 to ₹418.
Medi Assist Healthcare Services IPO is the second mainline issue of 2024 after Jyoti CNC Automation. The issue will debut on the primary exchanges of NSE and BSE.
About Company
Medi Assist Healthcare Services Limited was established in June 2002. As a health-tech and insurance-tech company, it manages health benefits primarily for insurance companies, employers, retail members, and public health schemes. The company offers medical insurance with the benefit of cashless hospitalization and plays the role of mediator between general and health insurance companies and their beneficiary members, between insurance companies and healthcare service providers (hospitals), and between the Government and public health scheme beneficiaries.
As of March 31, 2023, Medi Assist Healthcare has established a healthcare network across India by collaborating with 36 insurance companies, including 14,000+ hospitals in 967 cities of 32 states and UT.
During fiscal year 2023, the company approved 5.27 million claims in total, of which 2.44 million involved in-patient care and 2.83 million involved out-patient care. In the fiscal years 2021, 2022, and 2023, the retail portfolio generated revenue of ₹494.68 million, ₹579.84 million, and ₹570.29 million respectively.
Objects of the Issue
Through the IPO, the company aims to achieve benefits of listing on the stock exchanges in addition to enhancing its brand and visibility, and also providing liquidity to its existing shareholders. Since its an OFS, all proceeds from the issue will go the selling shareholders and the company will not receive any proceeds.
Medi Assist Healthcare IPO details at a glance
Axis Bank Limited, IIFL Securities Ltd, Nuvama Wealth Management Limited, and SBI Capital Markets Limited are the book running lead managers whereas Link Intime India Private Ltd is the registrar for Medi Assist Healthcare Services Limited IPO.
| Offer Dates | |
| Opening | January 15, 2024 (Monday) |
| Closing | January 17, 2024 (Wednesday) |
| Issue Details | |
| IPO Type | Book-built OFS |
| Issue Size | 28,028,168 shares aggregating up to ₹1,171.58 Crores |
| Offer for Sale | 28,028,168 shares aggregating up to ₹1,171.58 Crores |
| Face Value | ₹5 per Share |
| Price Range | ₹397 to ₹418 per share |
| Lot Size | 35 Shares |
| Lot Amount | ₹1,40,000 |
| Holding before issue | 6,88,59,212 Shares |
| Holding after issue | 6,88,59,212 Shares |
| IPO Organizer | |
| Listing at | NSE, BSE |
| BRML | Axis Bank Limited, Iifl Securities Ltd, Nuvama Wealth Management Limited and SBI Capital Markets Limited |
| Registrar | Link Intime India Private Ltd |
| Investor Cape & Quota | |
| – Retailer investors: Allotted 35% of net offering. Can apply for a maximum of 13 lots. – NIIs have a quota of 15% in which S-HNI can bid between 14 to 68 lots whereas B-HNI’s have to bid for a minimum of 69 lots. – QIB investors are offered 50% of the net offering. | |
| Share Allotment & listing | |
| Finalization of allotment basis | January 18, 2024 (Thursday) |
| Credit of Shares to Demat / Refunds / Unblocking of Funds | January 19, 2024 (Friday) |
| IPO Listing Date / Share Trading | January 22, 2024 (Monday) |
Company’s financials
Medi Assist Healthcare Services Limited recorded a 25.95% growth in revenue and a 15.3% rise in profit after tax (PAT) in FY23 vs FY22.
| Financial Period Ending in | 31 Mar’23 | 31 Mar’22 | 31 Mar’21 |
| Net Worth | 383.67 | 339.29 | 292.55 |
| Total Assets | 705.72 | 602.23 | 545.30 |
| Revenue | 518.96 | 412.02 | 345.57 |
| EBITDA | 119.34 | 91.22 | 75.59 |
| EBITDA Margin | 23.64% | 23.16% | 23.42% |
| Profit After Tax (PAT) | 74.04 | 64.22 | 26.27 |
| PAT Margin | 14.51% | 15.40% | 11.00% |
| Cash flow from operations | |||
| Debt-Equity (D/E) Ratio | |||
| Reserves & Surplus | 353.86 | 308.63 | 295.81 |
| Total Borrowing | |||
| In ₹ Crore | |||
IPO Valuation – Key Performance Indicator
| KPI | Values |
| Return on equity (ROE) | 18.71% (FY22) |
| Return on capital employed (ROCE) | 24.95% |
| Debt/Equity | |
| Earnings Per Share (EPS) | ₹10.65 |
| Return on Net Worth (RoNW) | 19.63% |
Note: Refer to the RHP for more detailed information.
