Medi Assist Healthcare IPO opens for subscription. Should you apply?
IPO) of Medi Assist Healthcare opens for subscription today. The issue, which closes on January 17, is completely an OFS of 2.8 crore shares.
Ahead of the issue launch, the company has raised Rs 351 crore from anchor investors. Prominent names who participated in the anchor round include Nomura, Goldman Sachs, Pinebridge Global, Troo Capital and HSBC.
The company will not receive any funds from the IPO since it is completely an OFS and the entire proceeds will go to the selling shareholders.
Medi Assist Healthcare provides third party administration services to insurance companies through its wholly owned subsidiaries. A third party administrator is an organization that processes health insurance claims for insurance companies and provides services such as policy administration, customer service and network management, among others.
Some of the company's strengths include a well established business model, scalable technology-enabled infrastructure, longstanding relationships with the majority of insurance companies and experienced management team and marquee shareholders.
Read more: IPOs this week: Medi Assist Healthcare, 2 SME issues on the radar for investors
Medi Assist Healthcare IPO review
Most analysts advised investors to subscribe to the issue as the company's market leading position as a third-party administrator enhances the ability to benefit from the prospects of the health insurance industry.
«Medi Assist's strong market position and growth potential are attractive, the identified risks and premium valuation necessitate careful assessment by investors,» said Swastika Investmart with a neutral recommendation.
«Based on the upper price band, the company’s P/E is valued at a multiple of 38x for FY23.
