Investcorp Private Equity Fund I, the part of Bahrain-based Investcorp Group, will be exiting Medi Assist Healthcare Services with a total profit of Rs 536.6 crore after the maiden public issue.
As per the red herring prospectus, Investcorp held 21.65 percent shareholding (1,49,10,452 equity shares) in the Bengaluru-based healthtech firm. Of this, Investcorp has sold (transferred) 86,34,746 equity shares, which is equivalent to 12.54 percent of the pre-offer equity capital at Rs 418 per share, valued at Rs 360.93 crore, on January 10, i.e. couple of days before the issue opening.
As a result, its shareholding in Medi Assist Healthcare Services has been reduced to 9.11 percent (62,75,706 shares), from 21.65 percent earlier.
The 12.54 percent shares were bought by six investors, namely SBI Life Insurance Company (3.51 percent), Ashoka India Equity Investment Trust PLC (2.08 percent), Volrado Venture Partners Fund -III-Beta (2.78 percent), SBI General Insurance Company (1.39 percent), and 360 One Special Opportunities Fund (Series 9 and Series 10 - 2.78 percent together).
The above share sale by Investcorp is not a part of the equity shares proposed to be sold via offer-for-sale (OFS) in the IPO during January 15-17.
Investcorp, the single largest public shareholder or non-promoter in Medi Assist, will be selling 62,75,706 equity shares in the OFS, i.e. the remaining shares, apart from above share sale. The said share selling is likely to be at upper price band of the issue i.e. Rs 418 per share and the total value of these shares will be Rs 262.32 crore.
With this, Investcorp will be completely exiting the health insurance third-party administrator after the IPO and receiving total sum of Rs 623.25 crore from the entire stake sale of 21.65 percent.
Its total stake of 21.65 percent was valued at Rs 86.66 crore at a price of Rs 58.12, the weighted average cost of acquisition per equity share. On the basis of above calculation, its total profit seems to be Rs 536.6 crore at a price of Rs 418 per share.
Also read: Medi Assist Healthcare IPO: GMP drops to 15% ahead of issue opening next week
Investcorp Private Equity Fund I, a unit scheme of Investcorp Infrastructure Fund 1 being managed by Investcorp India Asset Managers, became a shareholder in Medi Assist in 2013.
On January 10, Bessemer India Capital Holdings II, the promoter and shareholder in the company, also sold 41,86,500 equity shares (equivalent to 6.08 percent of the pre-offer equity share capital) in Medi Assist, at same price, to Denmark-headquartered Novo Holdings A/S which manages the Novo Nordisk Foundation's assets. The shares were valued at Rs 175 crore.
Thus, the shareholding of Bessemer India Capital Holdings II in the company that provides third-party administration (TPA) services to insurance companies, reduced to 29.84 percent, from 35.92 percent earlier.
Meanwhile, not only Investcorp but also promoters Vikram Jit Singh Chhatwal and Bessemer Health Capital LLC will be exiting the company by selling their entire personal shareholding via initial public offering.
Also read: $10 billion of equity to be raised from IPO market in next 1-2 years: Kotak Investment Banking
Medi Assist Healthcare Services will open its 2.8-crore equity shares IPO worth Rs 1,171.58 crore on January 15 and will close on January 17. It is entirely an OFS by the existing shareholders.
The price band for the offer has been fixed at Rs 397-418 per share.
Vikram Jit Singh Chhatwal and Bessemer Health Capital LLC will be selling 25,39,092 equity shares (3.69 percent stake) and 66,06,084 shares (9.59 percent), respectively in the offer-for-sale (OFS).
Apart from that, promoter Medimatter Health, which is owned by Vikram Jit Singh Chhatwal and his wife Savitri Choudhury, will also be offloading 1,24,68,592 equity shares in the OFS. It held 27.94 percent stake (1,92,40,428 shares) in the company.
Further, other nine shareholders will be selling 1,38,694 equity shares in the OFS.
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