Bengaluru-based health benefits administrator Medi Assist Healthcare Services has refiled draft papers with the capital markets regulator SEBI to raise funds via an initial public offering.
The public issue comprises only an offer-for-sale (OFS) of 2.8 crore shares by promoters and investors. Hence, the company will not receive any money from the offer.
Dr Vikram Jit Singh Chhatwal, Medimatter Health Management, and Bessemer Health Capital LLC are the promoters in Medi Assist.
Chhatwal will be offloading its entire personal shareholding of 25.39 lakh shares of 3.61 percent as well as 5.37 lakh shares jointly held with Medimatter Health Management, in the company via OFS.
Medimatter Health Management (including Chhatwal's shares) will be selling 1.24 crore shares, and Bessemer Health Capital LLC over 66.06 lakh shares via OFS. BICH-II (Bessemer India Capital Holdings II), and Bessemer Health collectively hold 44.51 percent shares in the company.
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Investor Investcorp Private Equity Fund I, a unit scheme of Investcorp Infrastructure Fund 1 managed by Investcorp India Asset Managers, is going to sell 62.75 lakh shares via the OFS against its current shareholding of 1.49 crore shares or 21.18 percent. Vivek Pandit, Rahul M Khanna, Shankar Rao Palepu, Pramod Manohar Ahuja, Keshav Sanghi, and Amitkumar Gajendrakumar Patni are other selling shareholders in the OFS.
If the listing plan turns successful, it is going to be country's first IPO by an insurance TPA (third-party administrator).
The TPA is an organisation that processes insurance claims on behalf of insurance companies. In India, the key role of TPAs is to act as an intermediary between the insurance companies and the insured (policyholders and employees) and facilitate the administration of cashless and reimbursement claims. As of March 2023, 17 TPAs operate in India.
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Earlier, Medi Assist, which emerged as the India’s largest health benefits administrator in terms of revenues in past three financial years (FY21-FY23), had filed draft papers in May 2021 for fund raising of Rs 840 crore via IPO. Moneycontrol was the first to report the company filing DRHP with the regulator.
About Medi Assist
It is the largest health benefits administrator in India in terms of premium under management for retail and group policies, with a market share of 14.83 percent of the retail health insurance market and 41.71 percent of the group health insurance market FY22.
Working with 36 insurance companies in India and globally, the Bengaluru-based company has managed Rs 14,574.65 crore of health insurance premiums (group and retail) at the end of FY23, growing at a CAGR of 35.67 percent from FY21.
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The change in behaviour of the people, especially after the COVID-19 pandemic, has played a significant role in driving substantial growth for several TPAs over the past three financial years. In FY23, its retail and group premium increased by 26.77 percent compared to FY22.
Medi Assist has registered healthy financial performance in past years available in the prospectus, with profit in FY23 growing 18.7 percent to Rs 75.3 crore and revenue increasing by 28.2 percent to Rs 504.9 crore compared to previous year.
Axis Capital, IIFL Securities, Nuvama Wealth Management, and SBI Capital Markets are the merchant bankers to the issue.
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