Medi Assist shares jump 9% on subsidiary's Rs 311-crore acquisition of Paramount TPA

Medi Assist shares have risen 13 percent in the last week.

Shares of Medi Assist Healthcare Limited surged over 9 percent to Rs 625 in morning trade on August 27 after the company announced its wholly-owned subsidiary Medi Assist Insurance TPA will acquire a full stake in Paramount Health Services & Insurance TPA for Rs 311.8 crore.

"The Board of Directors, in their meeting today, approved the acquisition of a 100% equity stake in Paramount Health Services & Insurance TPA Private Ltd by Medi Assist Insurance TPA Private Ltd, our wholly-owned subsidiary," the company stated in a stock exchange filing.

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Paramount Health Services & Insurance TPA, currently owned by Fairfax Asia and Dr. Nayan Shah's family, is being acquired in one of India's largest TPA deals, with the equity value expected to exceed Rs 400 crore. The acquisition was formalized on August 26, 2024, through a share purchase agreement, pending approval from the Insurance Regulatory and Development Authority of India (IRDAI) and completion of customary closing formalities.

Following the acquisition, Medi Assist’s market share by premiums managed is expected to increase by 6 percent in the group segment and by 4 percent in the overall health insurance industry (group and retail combined) as of March 2024. This strategic move positions Medi Assist Healthcare Services Ltd to strengthen its leadership in the health insurance sector and expand its service capabilities.

In the fiscal year 2024, Paramount TPA managed a total of Rs 3,866 crore in premiums for the group and retail segments, generating revenues of Rs 153 crore. With a strong market presence, particularly in the group segment where it ranks as the second-largest TPA by premiums, Paramount TPA is a valuable addition to Medi Assist’s portfolio.

At about 9:30 am, shares of the company were trading at Rs 610, up 8.7 percent from the last close on the NSE. Medi Assist shares have risen 13 percent in the last week.

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