Medi Assist Healthcare Services IPO Lists 10.05% higher, then edges up

Medi Assist Healthcare Services Ltd lists higher, but closes almost flat

Medi Assist Healthcare Services IPO had a relatively robust listing on 23rd January 2024, listing at a robust premium of 10.05% on the NSE but on top of that managed to close with marginal gains over the listing price. The stock of Medi Assist Healthcare Services Ltd closed the day at ₹461.95 per share, a premium of 0.42% over the listing price of ₹460 per share and a premium of 10.51% over the IPO price of ₹418 per share. Certainly, the IPO allottees of Medi Assist Healthcare Services Ltd would be pleased at the way the stock managed to close in the positive on a day when the Nifty and the Sensex almost fell vertically.

The pattern was exactly similar on the BSE also, although the stock actually closed lower than the listing price on the BSE. On the Bombay Stock Exchange (BSE), the stock of Medi Assist Healthcare Services IPO opened at ₹465 per share, a premium of 11.24% over the IPO issue price of ₹418 per share. For the day, the stock closed on the BSE at ₹464.25, an overall loss of (0.16%) on the IPO listing price of ₹465 per share but a premium of 11.06% over the issue price of ₹418 per share.  On the NSE, the stock of Medi Assist Healthcare Services Ltd closed the listing day just above the listing price of the day. On the BSE, the stock of Medi Assist Healthcare Ltd closed the day, a little short of the listing price on 23rd January 2024.

Stock gains amidst a fall in benchmark indices

While the closing price of Medi Assist Healthcare Services Ltd on 23rd January 2024 was substantially above the IPO issue price on both the stock exchanges, it did close very near to the listing price on both the exchanges. In fact, the stock closed marginally above the listing price on the NSE and marginally below the listing price on the BSE. However, what is creditable about the performance must be seen in the context of the index performance for the day.

On 23rd January 2024, the Nifty closed (333) points lower while the Sensex closed (1,053) points lower. On both the exchanges, it was more an example of the indices falling vertically on the back of heavy FPI selling in the previous week. Last week, FIPs were net sellers to the tune of $2.033 billion in Indian equities. However, the sharp market correction had little impact on the stock of Medi Assist Healthcare Services Ltd as it closed above the IPO issue price on both the stock exchanges.

IPO subscription and pricing details

The stock had reported modest subscription in the IPO. The subscription was 16.25X  overall and QIB subscription was at 40.14X. In addition, the retail portion had got subscribed 3.19X in the IPO while the HNI / NII portion also got a modest subscription of 14.85X. Hence the listing was expected to be fairly modest for the day. However, while the listing was modest, the performance strength got reinforced during the trading day as the stock closed around listing price of the IPO. While the stock was volatile on both the stock exchanges during the day, it stayed off the upper and lower circuits in trading on 23rd January 2024.

The IPO price was fixed at the upper end of the band at ₹418 per share which was anyways along expected lines considering the relatively modest subscription in the IPO. The price band for the IPO was ₹397 to ₹418 per share. On 23rd January 2024, the stock of Medi Assist Healthcare Services Ltd listed on the NSE at a price of ₹460 per share, a modest premium of 10.05% over the IPO issue price of ₹418 per share. On the BSE also, the stock listed at ₹465, a premium of 11.24% over the IPO issue price of ₹418 per share. Here is the Medi Assist Healthcare Services IPO listing story on 23rd January 2024.

How the stock of Medi Assist Healthcare Services Ltd closed on both exchanges

On the NSE, Medi Assist Healthcare Services Ltd closed on 23rd January 2024 at a price of ₹461.95 per share. That is a first day closing premium of 10.51% on the issue price of ₹418 and also a premium of 0.42% on the listing price of ₹460 per share. In fact, the listing price turned out much closer to the low of the day. The stork rallied much higher but could not sustain at higher levels and gravitated back towards the listing price. On the BSE also, the stock closed at ₹464.25. That represents a first day closing premium of 11.06% above IPO issue price but marginal discount of (-0.16%) below BSE listing price of ₹165 per share.

On both the exchanges, the stock listed strongly above the IPO issue price and also managed to close Day-1 rallying higher, although we saw the stock closing the day just around the listing price on both the stock exchanges. In fact, the opening price turned out to be closer to the low price of the day on the NSE and also on the BSE. The high price of the day on both the stock exchanges on 23rd January 2024 was well below the upper circuit price. However, on both the stock exchanges the stock did give up ground after an early rally. That could be attributed to the sharp fall in the indices, viz. the Nifty and the Sensex. In fact, on the NSE, the stock closed with open selling quantity of 13,858 shares, showing a lot of pent up selling pressure for the stock on the listing day. Similar sentiments were echoed on the BSE also.

Price volume story of Medi Assist Healthcare Services Ltd on the NSE

The table below captures the opening price discovery in the pre-open period on the NSE.

Data Source: NSE

Let us look at how the stock traversed on the National Stock Exchange (NSE) on 23rd January 2024. On Day-1 of listing, Medi Assist Healthcare Services Ltd touched a high of ₹518 per share on the NSE and a low of ₹445 per share. The premium to the listing price sustained through most part of the day. While the low price of the day was nearer to the IPO opening price, the stock of Medi Assist Healthcare Services Ltd did give up a good deal of its gains from higher levels to closer just above the listing price. Mainboard IPOs do not have an upper circuit of 5%, unlike SME IPOs since they trade in the normal equity segment and not in the trade to trade segment. In this case, the stock of Medi Assist Healthcare Services Ltd had an upper and lower circuit limit of 20% either ways on the listing price.

For the day on the NSE, the upper circuit price was ₹552 per share while the lower circuit price was ₹368 per share. During the day, the high price of the day at ₹518 was well below the upper band price while the low price of the day at ₹445 per share was well above the lower band price for the day at ₹368 per share. On Day-1 of listing, the Medi Assist Healthcare Services Ltd stock traded a total of 161.54 lakh shares on NSE amounting to value of ₹761.44 crore (traded turnover) during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers, with very little genuine profit booking visible even towards the end of the trading session. The stock closed the day with pending sell orders of 13,858 shares on the NSE, showing pent-up selling.

Price volume story of Medi Assist Healthcare Services Ltd on the BSE

Let us look at how the stock traversed on the Bombay Stock Exchange (BSE) on 23rd January 2024. On Day-1 of listing, Medi Assist Healthcare Services Ltd touched a high of ₹509.60 per share on the BSE and a low of ₹446 per share. The premium to the listing price sustained through most part of the day. While the low price of the day was nearer to the IPO opening price, the stock of Medi Assist Healthcare Services Ltd did give up a good deal of its gains from higher levels to closer just below the listing price. Mainboard IPOs do not have an upper circuit of 5%, unlike SME IPOs since they trade in the normal equity segment and not in the trade to trade segment. In this case, the stock of Medi Assist Healthcare Services Ltd had an upper and lower circuit limit of 20% either ways on the listing price of the day.

For the day on the BSE, the upper circuit price was ₹557.95 per share while the lower circuit price was ₹372 per share. During the day, the high price of the day at ₹509.60 was well below the upper band price while the low price of the day at ₹446 per share was well above the lower band price for the day at ₹372 per share. On Day-1 of listing, the Medi Assist Healthcare Services Ltd stock traded a total of 8.52 lakh shares on BSE amounting to value of ₹40.29 crore (traded turnover) during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers, with very little genuine profit booking visible even towards the end of the trading session. The stock closed the day with pending sell orders on the BSE also, showing pent-up selling.

Market capitalization, free float, and delivery volumes

Volumes on the BSE were generally lower than on the NSE, but the trend was once again the same. The order book through the day showed a lot of strength and that almost sustained till the close of trading session, with some hint of offloading towards the latter part of the trading session. The sharp fall in the Nifty and the Sensex did not deter the course of the stock on the NSE or on the BSE. That makes it a rather attractive stock after the strong listing on Tuesday and its ability to sustain gains on a tough trading day. On the NSE, out of the total 161.54 lakh shares traded during the first day of trading, the deliverable quantity represented 112.15 lakh shares or a deliverable percentage of 72.33% on the NSE, which is sharply higher than the routine listing day median.

That shows a lot of delivery trading action in the counter on the first day of trading. Even on the BSE, out of the total 8.52 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 4.29 lakh shares representing total deliverable percentage of 50.39%, which is sharply lower than the delivery share on the NSE, but almost at par with the typical listing day median on the BSE. On the BSE also, there was more of speculative trading volumes visible in the counter, as compared to the NSE, where delivery action was more visible. Unlike the SME segment stocks, which are on T2T on the day of listing, the mainboard IPOs permit intraday trading even on the day of listing also.

At the close of Day-1 of listing, Medi Assist Healthcare Services Ltd had a market capitalization of ₹3,196.79 crore with free-float market cap of ₹895.10 crore. Medi Assist Healthcare Services Ltd has issued capital of 688.59 lakh shares with a par value of ₹5 per share.