Medi Assist Healthcare Makes Strong Debut, Shares Open at 10% Premium23rd January 2024
Medi Assist Healthcare, a prominent health-tech firm, marked a robust entry into the stock market as its shares debuted at a 10% premium over the issue price, starting at Rs 460. The National Stock Exchange (NSE) witnessed the initial listing at Rs 460 per share, reflecting a significant increase from the issue price of Rs 418.
Simultaneously, on the Bombay Stock Exchange, the listing price reached Rs 465 per share, indicating an 11.24% rise from the issue price. Analysts, anticipating the debut within the range of Rs 450 to Rs 470 per share, acknowledged the positive response.
During the third day of the initial public offering (IPO) subscription period, the interest surged, with the subscription status reaching an impressive 16.25 times. Retail investors subscribed 3.19 times, non-institutional investors (NII) 14.85 times, and qualified institutional buyers (QIB) 40.14 times.
The IPO, valued at Rs 1,171.58 crore, included an offer-for-sale (OFS) by investors and promoters, aiming to sell 2.8 crore shares of the company. The proceeds, net of IPO expenses, would benefit the selling shareholders, including Dr. Vikram Jit Singh Chhatwal, Bessemer India Capital Holding II Ltd., and Medimatter Health Management Private Limited.
Prior to the IPO opening dates, Investor Investcorp Private Equity Fund I and promoter Bessemer India Capital Holdings II reduced their ownership, selling shares valued at Rs 536 crore on January 10.
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, commented on the impressive performance, stating, “This successful debut paints a brighter picture for Medi Assist, but cautious optimism is still advised.” She noted the company’s well-established presence in health-tech and insurance-tech but highlighted ongoing concerns regarding client concentration and dependence on subsidiaries.
Nyati advised investors to consider booking the listing gains and exiting holdings, while those opting to retain positions were advised to exercise caution by setting a stop loss at the issue price. The positive sentiment surrounding the health-tech firm’s prospects further adds to its promising market debut.