Medi Assist Healthcare IPO would open for subscription on January 15 and closes on January 17, 2024. It is a health-tech and insurance-tech company that manages health benefits for employers, retail members, and public health schemes, primarily serving insurance companies. Company has strong growth in the financials in the past. In this article we would provide details on Medi Assist Healthcare IPO, subscription dates, IPO Size, IPO Objectives, Positive Aspects, Risk Factors with complete Review and Analysis.
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About Medi Assist Healthcare Services Limited
Medi Assist Healthcare Services Limited, a company that is incorporated in 2002 is a health-tech and insurance-tech company that manages health benefits for employers, retail members, and public health schemes, primarily serving insurance companies.
It offers medical insurance and cashless hospitalization through a network of healthcare service providers. It also acts as a mediator between
(a) general and health insurance companies and their insured members
(b) insurance companies and healthcare providers and
(c) the Government and beneficiaries of public health schemes.
Medi Assist Healthcare has collaborated with 36 insurance companies in India and worldwide as of March 31, 2023.
Medi Assist Healthcare IPO Dates, Size, Price and Other Details
| IPO Opening Date | January 15, 2024 |
| IPO Closing Date | January 17, 2024 |
| IPO Listing Date | December 29, 2023 |
| Issue Type | Book Built Issue IPO |
| Face Value | Rs 5 per equity share |
| IPO Price band | Rs 397 to Rs 418 per equity share |
| Lot Size | 35 Shares |
| Listing at | BSE and NSE |
| Total Issue Size | Rs. 1171.58 Crores |
Medi Assist Healthcare Financials
| Financial Year ending / Period ending (Amt in Crores) | ||||
| Period Ended | 31-Mar-21 | 31-Mar-22 | 31-Mar-23 | 30-Sep-23 |
|---|---|---|---|---|
| Assets | 545.30 | 602.23 | 705.72 | 802.62 |
| Revenue | 345.57 | 412.02 | 518.96 | 312.03 |
| Profit After Tax | 26.27 | 64.22 | 74.04 | 22.49 |
| Net Worth | 292.55 | 339.29 | 383.67 | 416.64 |
| Reserves and Surplus | 295.81 | 308.63 | 353.86 | 102.03 |
Medi Assist IPO Objectives
- The objectives of the IPO is entirely Offer for Sale (OFS). Under OFS the IPO proceeds would go to selling shareholders and company would not benefit anything.
- The object of the Offer is to achieve the benefits of listing the equity shares on the Stock Exchanges. The company expects that listing the Equity Shares will enhance its visibility and brand and provide liquidity to its existing Shareholders.
Medi Assist Healthcare IPO – Why to invest?
- Company is a well established Third Party Administrator (TPA) in India.
- Company with scalable Technology-Enabled Infrastructure addressing the needs of all constituents of the Health Insurance Ecosystem with longstanding relationships with a majority of insurance companies
- It has a diversified base of group accounts with longstanding relationships
- Company has attractive Contracts with a pan-India Healthcare Provider Network
- Company has strong revenue and margin growth in the last 3 years.
Medi Assist Healthcare IPO – Risk Factors in this IPO
Investors should go through Medi Assist IPO RHP for complete risk factors. Below are the negative or risk factors in this IPO.
- Company IPO objectives is entirely OFS. Under OFS, the money would go to selling shareholders and company would not get benefitted.
- For the Financial Years 2021, 2022 and 2023, and the six months ended September 30, 2023, its five largest clients by revenue contributed 78%, 78%, 78%, and 71% of the total revenue from contracts with customers, The loss of one or more such clients could adversely affect its business and prospects.
- The report of B S R & LLP, the previous statutory auditors of the company and one of its subsidiaries, Medi Assist TPA, contains certain disclaimers of opinion, and the reports of M S K A & Associates, Chartered Accountants, the current statutory auditors of its Company and one of its subsidiaries, Medi Assist TPA, contain other matter and emphasis of matter paragraphs, as applicable.
- Its business is significantly dependent on group accounts in certain industries, and for the Financial Years 2021, 2022, 2023, and the six months ended September 30, 2023, of the total premiums serviced attributable to its 50 largest group accounts, group accounts in the IT/ITES sector contributed 50.02%, 45.48%, 68% and 46.11%respectively, and group accounts in the BFSI sector contributed 21.37%, 21.01%, 20.57% and 22.53%respectively. Any adverse developments affecting such industries may adversely affect our business and results of operations
- They are dependent on its Directors, Key Managerial Personnel and Senior Management, and the loss of, or its inability to attract or retain its employees and its Directors, Key Managerial Personnel and Senior Management could adversely affect its business, results of operations and financial condition
- They derive a significant portion of its revenue from contracts with customers from its subsidiaries. Its subsidiaries, Medi Assist TPA and Medvantage TPA contributed to 96.32% of its revenue from contracts with customers in the Financial Year 2023 and its Subsidiaries, Medi Assist TPA, Medvantage TPA and Raksha TPA contributed 92.98% of its revenue from contracts with customers in the six months ended September 30, 2023.
- Its subsidiaries, Medi Assist TPA, Raksha TPA and Medvantage TPA, have received show cause notices from IRDAI in the past. Any non-compliance with the Insurance Regulatory and Development Authority of India’s (IRDAI) inspections which take place periodically or any adverse observations by the IRDAI may adversely affect its business, results of operation or financial condition.
Medi Assist Healthcare IPO Price Valuation
- The IPO price band is Rs 397 to 418 per share
- P/E Ratio Analysis
- If we consider last 3 years weighted EPS of Rs 9.06, the P/E ratio works out to be 46x
- If we consider the last year FY23 EPS of Rs 10.65, the P/E ratio works out to be 39x
- If we consider the 6 months ending Sep-23 EPS and annualise it, the P/E ratio works out to be 68x
- Means company is asking the IPO price in the P/E range of 39x to 68x.
- Comparison with listed peers
- There are no listed peers for comparison, hence we cannot ascertain whether the issue price is under priced or overpriced.
- However, considering the P/E ratio of 39x to 68x in general, we can assume the IPO is fully priced.
FAQs on Medi Assist Healthcare Services IPO
#1 – What is Medi Assist IPO Price?
The IPO price band is fixed for Rs 397 to Rs 418.
#2 – What is the market share of Medi Assist?
Medi Assist TPA had a market share of 14.83% of the retail health insurance market and 41.71% of the group health insurance market.
#3 – Who is the CEO of Mediassist?
Satish V. N. Gidugu is the Whole Time Director and Chief Executive Officer of Medi Assist Group
#4 – Which is the largest TPA in India?
Medi Assist TPA is India’s Largest Health Benefits Administrator.
#5 – What is the Medi Assist IPO Grey market Premium?
The GMP of Medi Assist IPO is trending between Rs 80 to 81 in the last 3 days i.e. 9-Jan-24 to 11-Jan-24.
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Medi Assist Healthcare IPO Review – Is this good or bad for investment?
After going through the entire article, you might be wondering whether this IPO is good or bad for investment and whether you should subscribe or not.
- Medi Assist Healthcare is a health-tech and insurance-tech company that manages health benefits for employers, retail members, and public health schemes, primarily serving insurance companies. It is a leading Third Party Administrator (TPA). It has strong revenue and margin growth in the 3 years.
- On the negative side, company business is dependent on top few large clients and any loss in such clients can affect the business. Also, it derives its revenues from customers of its subsidiaries. The IPO proceeds would go to selling shareholders and company would not get benefitted.
High Risk Investors who understand all these risk factors can invest in this IPO. We may or may not get listing gains.
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There is a typing error in the para on GMP.It should read as last 3 days and not last 3 years
Thanks for highlighting. I have corrected it now.
Very Informative