Medi Assist Healthcare Services IPO: Check issue details, opening date, offer size

Medi Assist IPO opens on January 15

Bessemer Ventures & Investcorp-backed Medi Assist Healthcare Services, which provides third-party administration services to insurance companies, is set to be the second initial public offering (IPO) opening for subscription in the current year.

The public issue will open on January 15 and the bidding will continue till January 17, while the IPO price band will be announced on January 10. The company will open its anchor book, a part of the qualified institutional buyers (QIB) portion, for a day on January 12, a (working) day before the issue opening.

The Medi Assist Healthcare Services IPO is entirely an offer-for-sale (OFS) of 2.8 crore equity shares by the selling shareholders and there is no fresh issue component.

Promoters Dr Vikram Jit Singh Chhatwal, Medimatter Health Management, and Bessemer Health Capital LLC are the selling shareholders in the OFS. Investcorp Private Equity Fund I will also be offloading shares via OFS.

Among others, Vivek Pandit, Rahul M Khanna, Shankar Rao Palepu, Pramod Manohar Ahuja, Keshav Sanghi, Amitkumar Gajendrakumar Patni, Arihant Patni, Jyoti Ahuja and Ranjan Surajprakash Sanghi are also going to sell shares in the OFS.

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Promoters Dr Vikram Jit Singh Chhatwal, and Bessemer Health Capital LLC will be exiting the company by selling their entire personal shareholding via OFS.

Promoters hold 77.14 percent shares in Medi Assist Healthcare Services and the remaining 22.86 percent shares are held by public shareholders, including Investcorp Private Equity Fund I which has 21.18 percent shareholding.

Medi Assist Healthcare Services provides third-party administration services to insurance companies through its wholly-owned subsidiaries Medi Assist TPA, Medvantage TPA and Raksha TPA.

As a third-party administrator, Medi Assist, which works with 35 insurance companies in India and globally, acts as a facilitator between insurance companies and their policyholders, insurance companies and healthcare providers (such as hospitals), and the government and beneficiaries of public health schemes.

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Subsidiaries, Medi Assist TPA and Medvantage TPA contributed 96.32 percent to the company's revenue from contracts with customers in the last financial year 2022-23, while in the six months ended September FY24 (i.e. current financial year), 92.98 percent of revenue accounted by subsidiaries (Medi Assist TPA, Medvantage TPA and Raksha TPA).

Medi Assist TPA had a market share of 14.83 percent in the retail health insurance segment and 41.71 percent in the group health insurance market.

With a pan-India healthcare provider network comprising 18,754 hospitals in 1,069 cities and towns in India and a network across 141 countries globally, the Bengaluru-based company recorded net consolidated profit (from continuing operations) at Rs 75.3 crore for FY23 up from Rs 63.5 crore in the previous year, while its revenue from operations jumped to Rs 504.9 crore from Rs 393.8 crore during the same period.

In the six months ended September FY24, its net profit fell to Rs 24.3 crore from Rs 36.8 crore in the same period last year. Revenue from operations during the same period increased to Rs 301.9 crore from Rs 243.5 crore.

Medi Assist will finalise the basis of the allotment of IPO shares by January 18 and the equity shares will be credited to the demat accounts of eligible investors by January 19.

Trading in much-awaited Medi Assist IPO shares will commence on the BSE and NSE with effect from January 22, i.e. T+3 timeline, according to the IPO schedule.

Axis Capital, IIFL Securities, Nuvama Wealth Management, and SBI Capital Markets are the book-running lead managers to the public issue.