Promoter Bessemer India Capital Holdings II, and investor Investcorp Private Equity Fund I reduced their shareholding in Medi Assist Healthcare Services ahead of anchor book and IPO opening dates. They sold Rs 536 crore worth shares in the company on January 10.
Bessemer India Capital Holdings II, one of the promoters and the biggest shareholder in the company, has transferred 41,86,500 equity shares - equivalent to 6.08 percent of the pre-offer equity share capital - in Medi Assist, the third-party administration (TPA) services provider to insurance companies, at a price of Rs 418 per share, as per the notice to investors on January 12.
Bessemer India Capital has transferred the above-mentioned shares worth Rs 175 crore on January 10 to Denmark-headquartered Novo Holdings A/S which manages the Novo Nordisk Foundation's assets, as per the share purchase agreement between them on January 9. With this, Novo will be the new public shareholder in the company.
As a result of which, the shareholding of Bessemer India Capital has reduced to 29.84 percent (2,05,45,108 equity shares), from 35.92 percent (2,47,31,608) earlier or at the time of filing the red herring prospectus.
Further, as per the share purchase agreement on same date (January 9), Investcorp has transferred its 86,34,746 equity shares, representing 12.54 percent of the pre-offer equity capital of the company at same price i.e. upper price band, amounting to Rs 360.93 crore on January 10.
Thus, "the shareholding of investor Investcorp Private Equity Fund I in Medi Assist has reduced from 21.65 percent (1,49,10,452 shares) of the pre-offer equity share capital, to 9.11 percent (62,75,706 shares) of the pre-offer equity capital," the company said in its notice.
Investcorp sold those 86,34,746 equity shares to six investors namely SBI Life Insurance Company (3.51 percent stake post stake buy), 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).
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"The Bessemer sale shares and the Investcorp sale shares aggregate to 1,28,21,426 equity shares and represent 18.62 percent of the pre-offer equity shares capital of the company," Medi Assist said.
The company further said please note that the Investcorp sale shares do not form part of the equity shares proposed to be offered for sale by Investcorp in the offer-for-sale (OFS).
Investcorp will be selling 62,75,706 equity shares in the OFS during January 15-17, i.e. the remaining shares, apart from above share sale. This means the said investor will be exiting Medi Assist after the IPO and earning total of Rs 623.3 crore at the end from entire stake sale of 21.65 percent.
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The weighted average cost of acquisition per share for its total 1,49,10,452 shares (21.65 percent stake) was Rs 58.12 per share, amounting to Rs 86.66 crore. With this, Investcorp seems to be exiting Medi Assist with nearly Rs 537 crore profit.
The 2.8-crore shares Medi Assist Healthcare Services IPO will be opening during January 15-17, with a price band at Rs 397-418 per share, while the anchor book will be opened for a day on January 12.
The Bengaluru-based company promoted by Dr Vikram Jit Singh Chhatwal, Medimatter Health Management, and Bessemer Health Capital LLC intends to raise Rs 1,171.58 crore through initial public offering. This is entirely an offer-for-sale (OFS) by existing shareholders.
Promoters Dr Vikram Jit Singh Chhatwal, Medimatter Health Management, and Bessemer Health Capital LLC, as well as investor Investcorp Private Equity Fund I will be selling shares in the OFS, while the remaining 1,38,694 equity shares will be sold by the other 9 shareholders.
Further, Vikram Jit Singh Chhatwal and Bessemer Health Capital LLC will be exiting the company by selling their entire personal shareholding.
Medi Assist Healthcare Services provides third-party administration (TPA) services to insurance companies through its three wholly owned subsidiaries, Medi Assist TPA, Medvantage TPA and Raksha TPA.
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