Medi Assist Healthcare Services has a strong start on the stock market

In a resounding market debut, Medi Assist Healthcare Services witnessed the extension of gains after its successful listing on Tuesday. The shares of Medi Assist, a leading health-tech and insurance-tech company, were listed on the National Stock Exchange (NSE) with a remarkable 10% premium to the issue price, settling at ₹460 per share. Simultaneously, on the Bombay Stock Exchange (BSE), the shares started trading at ₹465 per share, an impressive 11.24% higher than the initial public offering (IPO) price of ₹418. As the rollercoaster ride continued, Medi Assist shares reached a peak of ₹509.60 apiece, generating exuberant market sentiments.

Positive Sentiment Reigns Supreme

Medi Assist
Ahead of its debut listing, Medi Assist shares were commanding a premium of ₹34 in the grey market, which further bolstered the positive outlook for the stock. The company’s IPO, held from January 15 to January 17, witnessed an oversubscription of 16.25 times, showcasing the unwavering demand from investors. The retail category subscribed 3.19 times, the Qualified Institutional Buyers’ (QIB) category saw an incredible subscription of 40.14 times, and the Non-Institutional Investors’ (NII) category witnessed an equally impressive subscription of 14.85 times. This overwhelming response from investors is a testament to the robust prospects of Medi Assist Healthcare Services.

Balancing Short-Term and Long-Term Investment Strategies

While the stock market debut of Medi Assist Healthcare Services has fueled optimism among investors, analysts suggest adopting a balanced approach for short-term and long-term investment decisions. In the short term, some investors may opt to book profits after listing, while long-term investors could consider holding the stock, setting a stop loss at the issue price of ₹418. Although Medi Assist is a well-established health-tech and insurance-tech firm, there are concerns regarding client concentration and dependence on subsidiaries, which warrant ongoing monitoring. Shivani Nyati, the Head of Wealth at Swastika Investmart Ltd., advises cautious optimism and suggests booking listing gains and exiting positions for those looking to secure profits. However, for those who choose to retain their holdings, it is recommended to set a stop loss at the IPO issue price level.

Medi Assist’s ₹1,172 Crore IPO Opens New Investment Opportunities

A Health-Tech Giant on the Rise

Medi Assist Healthcare Services, a pioneer in the health-tech and insurance-tech industry, successfully raised ₹1,171.58 crore from its IPO. The public offering consisted of an offer-for-sale (OFS) by investors and promoters who collectively sold 2.8 crore equity shares. The IPO price band was fixed at ₹397-418 per share, attracting significant investor interest.
As of September 30, 2023, Medi Assist has built an extensive pan-India healthcare provider network comprising 18,754 hospitals spread across 1,069 cities, towns, and 31 states (including union territories). Striving to offer comprehensive healthcare solutions, Medi Assist has expanded its network to cover 141 countries worldwide, providing an extensive range of medical services to a diverse population.

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As mid-morning bells chimed at 11:15 am, Medi Assist Healthcare Services shares traded on the BSE at ₹470.95 apiece, marking a remarkable 1.28% increase from the listing price and a significant climb of 12.67% compared to the IPO price.
Disclaimer: The views and recommendations expressed here are those of individual analysts or broking companies and do not represent the opinions of Mint. Investors are strongly advised to consult certified financial experts before making any investment decisions.

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