Medi Assist Healthcare Services made a remarkable debut on the stock exchanges, showcasing an 11% rally in its first session, despite a significant correction in the overall equity markets on January 23. While the benchmark indices experienced a 1.5% correction, and broader markets such as Nifty Midcap and Smallcap 100 indices faced around a 3% decline, the pharma and healthcare indices stood resilient, recording an upward movement of more than 1.5% each.
The stock commenced trading 10% higher at Rs 460, aligning with analysts’ expectations. It reached a high of Rs 518 against the issue price of Rs 418 per share, displaying volatility throughout the session. Despite hitting a day’s low of Rs 445, the stock firmly held on to its issue price, showcasing a robust performance amidst the market correction.
Medi Assist shares closed the session with an 11.03% gain at Rs 464.10 on the NSE, accompanied by a trading volume of 1.6 crore equity shares. On the BSE, it registered an 11.06% increase, closing at Rs 464.25, with a volume of 8.5 lakh equity shares.
Being the first third-party administrator listed on the bourses, Medi Assist Healthcare Services’ impressive performance follows an oversubscribed IPO, contributing to positive sentiment surrounding the health-tech firm’s prospects, as highlighted by Shivani Nyati, Head of Wealth at Swastika Investmart.
Medi Assist Healthcare Services, based in Bengaluru, operates as a healthcare third-party administrator, having raised Rs 1,171.58 crore through its maiden public issue. The IPO comprised only an offer-for-sale by existing shareholders, and the company did not receive any funds from the issue, with all proceeds (excluding IPO expenses) going to selling shareholders.
While the health-tech and insurance-tech company has established itself in the industry, ongoing monitoring is essential due to identified concerns regarding client concentration and dependence on subsidiaries, as emphasized by Shivani Nyati.
