Medi Assist IPO Debuted With 54% Subscription On Day 1

On the first day of subscription, the retail investors' portion of the Medi Assist Healthcare Services IPO saw a subscription rate of 89%, while 45% of the Non-Institutional Investors (NII) portion was subscribed.

In a tepid beginning to its initial public offering (IPO), Medi Assist Healthcare Services witnessed a slow start on the first day of subscription, with only 54% of the issue being booked.

Despite the subdued start, optimism remains for a positive outcome with two more days remaining in the subscription window for the Medi Assist IPO.

On the first day of subscription, the retail investors' portion of the Medi Assist Healthcare Services IPO saw a subscription rate of 89%, while 45% of the Non-Institutional Investors (NII) portion was subscribed.

The Qualified Institutional Buyers (QIB) portion is yet to be booked. The price band for the IPO has been fixed in the range of INR 397 to INR 418 per equity share, with a face value of INR 5.

Medi Assist Raises More Than INR 300 Cr from Anchor Investors

The third-party health insurance service provider opened a subscription for Anchor Investors on January 12. The company successfully raised ₹351.47 crore from 35 anchor investors by allotting 84,08,449 equity shares among them.

According to the exchange filing submitted by Medi Assist, its anchor investors include Nomura Trust, Goldman Sachs, Ashoka Whiteoak, Pinebridge Global Funds, Troo Capital, and HSBC.

HDFC Mutual Fund, Kotak Mahindra Trustee, Aditya Birla Sun Life Trustee, SBI Life Insurance Company, Mirae Asset, Canara Robeco Mutual Fund, Tata Mutual Fund, Sundaram Mutual Fund, Bandhan Mutual Fund, Edelweiss Trusteeship, Bajaj Allianz Life Insurance Company, Max Life Insurance Company and SBI General Insurance Company also participated in the anchor book.

Medi Assist Day 1 IPO Subscription Breakdown

The subscription period for the Medi Assist IPO commenced on Monday, January 15, and is set to conclude on Wednesday, January 17.

As per data from the BSE, the overall bids for the Medi Assist Healthcare Services IPO reached 1,05,88,865 shares against the total offer of 1,96,19,719 shares.

Breaking down the segments, the retail investors' portion received bids for 87,03,660 shares against the 98,09,859 shares available for this category. Meanwhile, the non-institutional investors' portion received bids for 18,80,340 shares against the 42,04,226 shares on offer for this segment.

The QIBs portion, however, witnessed a lower interest, with bids for only 4,865 shares against the 56,05,634 shares on offer for this category.

Medi Assist’s Core Functions

2024’s maiden and a first for TPA in India, the Medi Assist IPO is valued at INR 1,171.58 Cr and only involves an offer-for-sale (OFS) by investors and promoters.

The stakeholders of the Bengaluru-based company are offloading INR 2.8 Cr shares from their kitty. Investors can subscribe to a lot of 35 shares or its multiples. The selling shareholders will receive the total net proceeds from the sale, minus the expenses associated with the IPO.

Notable participants in the OFS include promoter Dr Vikram Jit Singh Chhatwal, Medimatter Health Management, Bessemer Health Capital LLC, and Investcorp Private Equity Fund I.

In the last fiscal year, the company posted revenue of INR 570.29 million.

Medi Assist Healthcare Services Limited offers services to insurance companies through its subsidiaries, Medvantage TPA, Raksha TPA, and Medi Assist TPA. These subsidiaries handle health insurance claims on behalf of insurance companies and provide services such as managing networks, administering policies, and customer support.

The company offers additional healthcare services such as hospitalisation, call centre support, customer relations, contract management, billing, and claims processing.

Medi Assist has established a widespread healthcare provider network in India, comprising 18,754 hospitals across 1,069 cities and towns, 31 states (including union territories), and 141 countries worldwide, as of September 30, 2023.