The Medi Assist Healthcare Services initial public offering (IPO) has opened today January 15 for subscription. As anticipation builds, the company’s shares are currently trading at a premium of ₹32 in the grey market. Investors are eagerly watching as the subscription period will come to a close on January 17. The company is offering its shares in the range of Rs 397-418 per share with a lot size of 35 shares.
Medi Assist Healthcare Services has emerged as a prominent player in the health-tech and insurance-tech sector. In the ever-evolving landscape of healthcare services, companies that prioritize innovation and accessibility stand out. What makes the issue attractive is the absence of any listed company on Indian stock exchanges with similar business plans.
Medi Assist Healthcare declared a net profit of Rs 22.49 crore, accompanied by a revenue of Rs 312.03 crore for the period ending on September 30, 2023. Notably, the company achieved a net profit of Rs 74.04 crore, coupled with a revenue of Rs 518.96 crore for the fiscal year concluding on March 31, 2023.
The firm’s robust financials and operational capabilities underscore its substantial market footprint and strategic collaborations with prominent insurance companies. Despite these strengths, there are notable vulnerabilities such as a reliance on premium growth for revenue and exposure to risks associated with technology. The Price-to-Earnings (P/E) ratio for the upcoming IPO ranges from 38.86x to 64x. When contrasted with the industry average of 15.16x, it implies a potential overvaluation, prompting investors to consider this aspect carefully.
