Medi Assist IPO day 2: Issue subscribed 76%, retail portion fully subscribed

16 Jan 2024 , 11:44 AM

Medi Assist’s initial public offer (IPO) witnessed a subscription of 54% by the end of the first day on Monday. Before opening the public issue, the company successfully garnered Rs 351 crore from anchor investors. Click here to subscribe the IPO.

By 11:35 AM on the second day, the retail portion had been fully subscribed, reaching 1.23 times, while the non-institutional investors’ portion achieved a subscription of 65%, contributing to an overall subscription rate of 76%. Notably, the qualified institutional buyers did not place any bids for the Rs 1,171 crore issue.

The primary objective of Medi Assist’s IPO is to complete the Offer for Sale (OFS) and realize the benefits of listing equity shares on the stock exchanges. Importantly, all the proceeds from the offering will go to the selling shareholders, and the company itself will not receive any funds.

In terms of financial performance, Medi Assist reported an impressive 18.7% year-on-year growth in consolidated net profit, reaching Rs 75.31 crore for the fiscal year ending March 2023. This growth is attributed to robust top-line and operating margin performance. The subsidiaries, namely Medi Assist TPA, Medvantage TPA, and Raksha TPA, significantly contributed, accounting for 92.98% of the company’s revenue from customer contracts in the first half of FY24.

The basis of IPO share allotment is scheduled to be finalized by January 18, and successful investors can expect the shares to be credited to their demat accounts by January 19. The stock is anticipated to be listed on the bourses on January 22.