Medi Assist Healthcare Services IPO: Review, Valuation & GMP

IPO opening & closing date	15 January to 17 January 2024
Face value	Rs. 5  per share
Issue Price	Rs. 397 - Rs. 418 per share
Lot Size	35 share
Price of 1 lot	Rs. 14,630
Total Issue Size	28,028,168 shares (aggregating up to Rs.1,171.58Cr)
Offer for sale	28,028,168 shares of Rs. 5 (aggregating up to Rs.1,171.58 Cr)
Listing at	BSE NSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Private Ltd

 

 

Medi Assist Healthcare IPO Lot Details

Application	Lot	Shares
Minimum Lot Investment (Retail)	1 lot	35
Maximum Lot Investment (Retail)	13 lot	455
Minimum Lot Investment (HNI)	14 lot	490
Maximum Lot Investment (HNI)	68 lot	2380

 

Medi Assist Healthcare IPO Reservation

QIB Shares Offered	Maximum 50%
Retail Shares Offered	Minimum 35%
Other Shares Offered	Minimum 15%

 

Revenue By operations

As of September 30, FY23, the company's total revenue saw an increase from the previous year, with core operations and additional income contributing to the overall growth.          
(amount in Crore)

Particulars	Sep 30 FY 23	Mar 31  FY 23	Mar 31  FY 22
Revenue from operations	3,01.95	5,04.93	3,93.81
Other Operating Income	10.07	14.02	18.21
Total Revenue from operations	3,12.02	5,18.95	4,12.02

 

Company Financial

As of September 30, FY23, the company's assets, revenue, profit, net worth, and reserve & surplus all showed positive growth compared to the previous financial year.

(Amount in Cr.)

Period	Sep 30 FY 23	Mar 31  FY 23	Mar 31  FY 22
Total Assets	802.62	705.72	602.23
Total Revenue	312.03	518.96	412.02
PAT	22.49	74.04	64.22
Net worth	416.64	383.67	339.29
Reserve & Surplus	102.03	353.86	308.63

 

 

The Objective of the Issue

• Equity shares listing aims to enhance visibility and brand recognition.

• Providing liquidity to existing shareholders is a key objective.

• The company will not receive proceeds; all funds go to selling shareholders in proportion to their offered equity shares.

 

Promoters and Management of Medi Assist Healthcare IPO

1. Dr. Vikram Jit Singh Chhatwal.

2. Medimatter Health Management Private Limited.

3.Bessemer India Capital Holding II Ltd.

Pre-issue Promoter Shareholding	67.55%
Post-issue Promoter Shareholding	45.75%

 

Medi Assist Healthcare IPO Lead Managers

• Axis Bank Limited

• Iifl Securities Ltd

• Nuvama Wealth Management Limited

• SBI Capital Markets Limited
  
  

Peers of Medi Assist Healthcare IPO:

There are no listed companies in India that engage in a business similar to that of their  Company.

Therefore, it is not possible to provide an industry comparison in relation to their Company.

 

Evaluation

Particulars	P/E  (X)	EPS (Rs)
Pre IPO	38.87	10.75
Post IPO	64	6.53

 

The IPO (Initial Public Offering) is priced between Rs. 397 and Rs. 418 per share. When we check the P/E (Price-to-Earnings) ratio using the earnings from the previous year, it is 38.86x. However, if we use the expected earnings after the IPO, the P/E ratio becomes 64x.

So, the IPO is priced at a P/E ratio between 38.86x and 64x. Comparing this with the average industry P/E ratio of 15.16, it suggests that the IPO may be considered highly overvalued.

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board. They aim to pay 50-75% of their profits as dividends and might pay an extra 25% from past earnings. If dividends are more than ₹1,500, they'll be sent electronically.

 

IPO's Strengths

1. Industry Advantage: Well-positioned in a thriving industry.

2. Market Leader: Largest health benefits administrator in India.

3. Strong Partnerships: Long Standing relationships with major Indian insurance companies.

4. Nationwide Contracts: Attractive agreements with a pan-India healthcare provider network.

 

 

IPO's Weaknesses

1. Revenue Dependency: Future earnings hinge on managed premium growth.

2. Tech Vulnerability: Brand reputation at risk due to technology dependence.

3. Client Loss Impact: Adverse effect on business and prospects from client loss.

4. Regulatory Compliance: Non-compliance with IRDAI standards poses a significant risk.

 

IPO GMP Today 

The latest GMP of Medi Assist Healthcare IPO is Rs.35.

Conclusion

The upcoming IPO of Medi Assist Healthcare Services Limited is set to open for subscription from January 15, 2024, to January 17, 2024. The company, founded in 2002, is a prominent player in the health-tech and insurance-tech sector, managing health benefits for various clients, including insurance companies. The IPO price ranges from Rs. 397 to Rs. 418 per share.

The company's financials and operational strengths highlight its significant market presence and partnerships with major insurance firms. However, potential weaknesses include revenue dependency on premium growth and vulnerability to technology-related risks. The IPO's Price-to-Earnings (P/E) ratio is between 38.86x and 64x, which, when compared to the industry average of 15.16, suggests a potential overvaluation

Disclaimer:

Please note that this blog is not any recommendation for buying or selling any stock. We always encourage the reader to do their research before investing in any stock

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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