Medi Assist Healthcare has provided clarifications regarding the timeline for utilizing proceeds from a recent preferential issue of equity shares. The company plans to raise INR 198.00 crore through the issuance of 37,01,000 equity shares to Massachusetts Institute of Technology (MIT) and 238 Plan Associates LLC.

Proceeds Utilization Plan

The company has outlined its plans for the utilization of the funds raised:

1. Debt Repayment: INR 150.00 crore will be invested in a subsidiary for debt prepayment or repayment.
2. General Corporate Purposes: The remaining INR 48.00 crore will be used for general corporate purposes.

Medi Assist Healthcare has clarified that the utilization of these funds will commence on the date of allotment of shares pursuant to the preferential issue. The company expects to complete the utilization of the entire amount within two years from the commencement date.

Shareholder Approval and Regulatory Compliance

The preferential issue was approved by shareholders in an extraordinary general meeting. The clarification comes in response to observations made by the National Stock Exchange of India Limited, demonstrating the company's commitment to regulatory compliance and transparency.

Impact on Shareholding Pattern

Medi Assist Healthcare has also provided an updated shareholding pattern on a fully diluted basis, considering the impact of the preferential issue:

The updated pattern shows a slight decrease in promoter group holding from 20.37% to 19.36%, while the non-promoter public shareholding increases from 78.73% to 79.79% post the preferential issue.

Institutional Interest

Notably, the preferential issue has attracted significant institutional interest. Foreign Portfolio Investors' (Category I and II) stake is expected to increase from 13.76% to 16.94% following the issue, indicating growing confidence in Medi Assist Healthcare's business prospects.

This move by Medi Assist Healthcare to raise funds through a preferential issue and provide detailed clarifications on its utilization demonstrates the company's proactive approach to capital management and commitment to keeping investors informed. As the company moves forward with its plans, stakeholders will be keenly watching how effectively these funds are deployed to strengthen Medi Assist Healthcare's financial position and support its growth initiatives.

Medi Assist Healthcare Services Ltd has seen significant changes in its shareholding pattern, with two major investors increasing their stakes in the company.

Wasatch Advisors LP Boosts Shareholding

Wasatch Advisors LP, a U.S.-based investment firm, has substantially increased its stake in Medi Assist Healthcare Services Ltd. Through open market purchases, Wasatch acquired 2,572,378 shares, raising its total holding from 1,544,039 shares (2.19% of the voting capital) to 4,116,417 shares (5.84% of the voting capital).

Aditya Birla Sun Life MF Also Increases Stake

In a separate transaction, Aditya Birla Sun Life Mutual Fund has also raised its stake in Medi Assist Healthcare. The fund house acquired 1,913,739 shares, increasing its total holding to 4,961,061 shares, which represents 7.03% of the company's total share capital.

Details of the Transactions

The transactions were disclosed in regulatory filings to the stock exchanges. Here's a breakdown of the changes:

Company Information

Medi Assist Healthcare Services Ltd is listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The company has a total share capital of 70,538,100 shares with a par value of Rs 5.00 each.

Market Implications

These significant stake increases by institutional investors could be seen as a positive sign for Medi Assist Healthcare, potentially indicating confidence in the company's future prospects. However, it's important to note that Wasatch Advisors LP is not part of the promoter group, as stated in their disclosure.

The company is set to hold its 25th Annual General Meeting, for which the notice and annual report will be sent to shareholders electronically.

Investors and market watchers will likely keep a close eye on Medi Assist Healthcare's performance and any further changes in its shareholding pattern in the coming months.