Medi Assist Healthcare Services and Appejay Surrendra Park Hotels have got the Securities and Exchange Board of India’s approval to launch initial public offerings to raise funds.
The market regulator issued an observation letter to Park Hotels on December 7 and to Medi Assist the next day, the processing status of draft offer documents published by the Sebi on December 13 on its website showed.
An observation letter means that a company has SEBI’s permission to float its IPO within a year of getting the letter.
First IPO by an insurance TPA
Bengaluru-based health benefits administrator Medi Assist Healthcare Services refiled draft papers with the regulator on August 25. It is looking to raise around Rs 800-Rs 1,000 crore through the issue, which will purely be an offer for sale of 2.8 crore shares.
Dr Vikram Jit Singh Chhatwal, Medimatter Health Management, and Bessemer Health Capital LLC, the part of promoter group, will 2.16 crore shares in the OFS. Investor Investcorp Private Equity Fund I, a unit scheme of Investcorp Infrastructure Fund 1 managed by Investcorp India Asset Managers, will sell 62.75 lakh shares. The company holds 1.49 crore shares, or 21.18 percent, in Medi Assist.
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Chhatwal will offload its entire personal shareholding as well as 5.37 lakh shares jointly held with Medimatter Health Management, in the company, offer documents show.
BICH-II (Bessemer India Capital Holdings II), and Bessemer Health collectively hold 44.51 percent shares in the company.
Vivek Pandit, Rahul M Khanna, Shankar Rao Palepu, Pramod Manohar Ahuja, Keshav Sanghi, and Amitkumar Gajendrakumar Patni are the other selling shareholders.
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This will be the country's first IPO by an insurance third-party administrator (TPA). Medi Assist has emerged as India’s largest health benefits administrator in terms of revenues in past three financial years (FY21-FY23).
Axis Capital, IIFL Securities, Nuvama Wealth Management, and SBI Capital Markets are the merchant bankers to the issue.
Paring debt
Appejay Surrendra Park Hotels, which is looking to raise Rs 1,050 crore, filed the papers on August 19. The IPO consists of fresh issue of shares worth Rs 650 crore and an OFS of Rs 400 crore.
Promoter entities Apeejay Surrendra Trust and Apeejay will sell Rs 376 crore worth of shares. The remaining Rs 24 crore worth of shares will be offloaded by RECP IV Park Hotel Investors and RECP IV Park Hotel Co-Investors, draft papers show.
The company, which runs hotels under The Park brand, may consider raising Rs 130 crore in a pre-IPO placement. If that happens, the fresh issue size will be reduced.
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The proceeds from the fresh issue will be used for repaying Rs 550 crore debt and the remaining funds will be used for general corporate purposes, draft documents show.
As of July 1, 2023, the company’s borrowings amounted to Rs 606.6 crore on a consolidated basis.
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JM Financial, Axis Capital, and ICICI Securities are the book running lead managers to the issue.
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