Medi Assist Healthcare Services, a Bengaluru-based third-party administration services provider to insurance companies, has fixed the price band at Rs 397-418 per share for its Rs 1,171.58-crore public issue.
The initial public offer, opening on January 15, will comprise 2.8 crore shares. The issue closes on January 17, while the anchor book will open for a day, on January 12.
The Medi Assist Healthcare Services IPO consists of only an offer-for-sale (OFS) by several existing shareholders, including promoters and investors. Hence, the entire issue proceeds, excluding the IPO expenses, will go to the selling shareholders.
Promoters Dr Vikram Jit Singh Chhatwal, Medimatter Health Management, and Bessemer Health Capital LLC, and investor Investcorp Private Equity Fund I are the major selling shareholders in the OFS, while nine more shareholders will offload 1.38 lakh shares in the OFS.
As per the red-herring prospectus, promoters have 77.14 percent shareholding in the third-party administrator, with Bessemer India Capital Holdings II being the major shareholder with 35.13 percent stake (pre-offer) and Medimatter Health being the second largest shareholder with 27.33 percent shares.
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The remaining 22.86 percent shares are held by public shareholders, including Investcorp Private Equity Fund I with 21.18 percent stake.
Among selling shareholders, Dr Vikram Jit Singh Chhatwal, and Bessemer Health Capital LLC will be exiting the company by selling their entire personal shareholding via OFS.
The Bessemer Ventures & Investcorp-backed company provides third-party administration services to insurance companies through its three wholly owned subsidiaries, Medi Assist TPA, Medvantage TPA and Raksha TPA, which accounted for 92.98 percent of revenue in the six months ended September FY24.
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.
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The company has reserved 50 percent of its issue size for qualified institutional buyers, and 15 percent for non-institutional investors (high net-worth individuals). The remaining 35 percent shares are reserved for retail investors.
Investors can bid for a minimum of 35 equity shares, i.e. one lot, and in multiples of 35 shares thereafter. Retail investors can make a minimum application size of Rs 14,630 for 35 shares and their maximum investment will be Rs 1,90,190 for 455 shares.
With a pan-India healthcare provider network, comprising 18,754 hospitals, Medi Assist reported a consolidated net profit of Rs 24.3 crore for the six months ended September FY24, down from Rs 36.8 crore last year. Revenue from operations during the same period increased to Rs 301.9 crore from Rs 243.5 crore.
In the six-month revenue in FY24, subsidiary Medi Assist TPA accounted for Rs 271.4 crore, Medvantage TPA Rs 2.96 crore and Raksha TPA Rs 6.4 crore.
Medi Assist is going to be the first listed entity in the third-party administration services (to insurance companies) sector, after debuting on January 22 on the bourses.
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