Medi Assist Healthcare Services Limited has taken a significant step towards ensuring transparency and compliance in its recent capital raising initiative. The company has appointed CARE Ratings Limited as the monitoring agency to oversee the utilization of proceeds from its preferential issue of equity shares.

Details of the Preferential Issue

The appointment follows an Extra-Ordinary General Meeting (EGM) notice dated August 11, 2025, where Medi Assist sought approval for issuing 37,01,000 fully paid-up equity shares on a preferential basis. This move is in line with the company's efforts to raise capital for its operations and growth plans.

Role of CARE Ratings

CARE Ratings Limited, a SEBI registered Credit Rating Agency with its registered office in Mumbai, will be responsible for monitoring the utilization of proceeds from the preferential issue. Their role will be crucial in ensuring that the funds are used in accordance with the objects disclosed in the EGM notice.

Regulatory Compliance

This appointment is in compliance with Regulation 162A of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. It demonstrates Medi Assist's commitment to regulatory adherence and transparent financial practices.

Company's Statement

In an official communication to the stock exchanges, Medi Assist Healthcare Services Limited stated, "The Company has appointed CARE Ratings Limited... as the Monitoring Agency to monitor the utilization of the proceeds of the Preferential Issue in accordance with the objects, as disclosed in Paragraph I (Objects of the Issue) read with Paragraph II (Utilization of Issue Proceeds) of the Explanatory Statement annexed to the EGM notice."

Implications for Investors

The appointment of a monitoring agency provides an additional layer of assurance to investors. It ensures that the funds raised through the preferential issue will be utilized as per the stated objectives, enhancing transparency and accountability in the company's financial operations.

Medi Assist Healthcare Services Limited's proactive approach in appointing CARE Ratings as the monitoring agency reflects its commitment to good corporate governance practices and regulatory compliance. This move is likely to be viewed positively by stakeholders and could potentially boost investor confidence in the company's financial management.

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.