Medi Assist list at 11% premium ahead of grey market expectations

• The stock listed at ₹465 as compared to the issue price of ₹418.
• The grey market had been expecting 8% listing gains from the stock.
• Its market capitalization is at ₹3,201 crore as per Bombay Stock Exchange.

Medi Assist Healthcare debuted on the stock exchanges at a 11.2% premium on Tuesday. The grey market was expecting 8% listing gains from the stock.

The stock listed at ₹465 as compared to the issue price of ₹418. Its market capitalization is at ₹3,201 crore as per Bombay Stock Exchange.

The broader markets opened in the green on Tuesday, with Sensex gaining over 360 points and Nifty by 100 points as of 10 am.

The ₹1,171 crore issue was subscribed 16 times over the shares on offer. It also raised as much as ₹351 crore from anchor investors ahead of opening the issue to the public. Some of its anchor investors include Nomura Trust, Pinebridge Global Funds, Troo Capital, Tata Mutual Fund, Sundaram Mutual Fund and more.

In 2023, many new debutantants on the stock exchanges provided positive listing gains.

Here are the listing gains of the last few market debuts

Medi Assist’s issue is a complete offer for sale (OFS) with no fresh issue. It claims to be India’s largest health benefits administrator in terms of revenues as of FY21 to FY23.

Its primary clients are insurance companies; but it also serves as an intermediary between general and health insurance companies and the insured members, insurance companies and healthcare providers (such as hospitals), and the Government and beneficiaries of public health schemes.

As of FY22, its total revenues accounted for 24.89% of the Indian health benefits administration industry revenue, as per a Frost & Sullivan report. It’s also the largest health benefits administrator in India in terms of premium under management for retail and group policies, with a market share of 14.83% of the retail health insurance market.

The company has no peers listed in the market.

In FY23, its restated consolidated net profit went by 18.7% to ₹75.3 crore. Its revenues went up by 26% to ₹518.9 crore.