Medi Assist Healthcare Services files draft papers with Sebi for IPO

Medi Assist Healthcare Services has filed its draft-red herring prospectus (DRHP) with the capital markets regulator Sebi to launch its initial public offering (IPO). Bengaluru-headquartered Medi Assist is one of India’s largest health benefits administrators.

According to the DRHP, the issue will be entirely an offer-for-sale (OFS) of up to 2.80 crore equity shares of the company with a face value of Rs 5 each by existing shareholders and promoters of the company. It means that the company will not receive any proceeds from the issue.

Promoters including Vikram Jit Singh Chhatwal, Medimatter Health Management and Bessemer Health Capital LLC, along with Investcorp Private Equity Fund I, Vivek Pandit, Rahul M Khanna, Shankar Rao Palepu, Pramod Manohar Ahuja, Keshav Sanghi, Amitkumar Gajendrakumar Patni and other joint entities will participate in OFS.

Medi Assist Healthcare Services, primary clients are insurance companies. It also serves as an intermediary between general and health insurance companies and the insured members, insurance companies and healthcare providers, and the government and beneficiaries of public health schemes.

Medi Assist Healthcare Services is the largest health benefits administrator in India in terms of premium under management for retail and group policies, with a market share of 14.83 per cent of the retail health insurance market and 41.71 per cent of the group health insurance market, according to F&S Report.

The company managed Rs 14,574.65 crore of health insurance premiums (group and retail) as of the end of financial year 2023, which grew at a CAGR of 35.67 per cent from Rs 7,918.49 crore as at the end of financial year 2021. As of March 31, 2023, it worked with 36 insurance companies in India and globally.

50 per cent of shares will be allocated to the qualified institutional bidders (QIBs), while 15 per cent of shares shall be allocated to the non-institutional investors (NIIs). The remaining 35 per cent shares will go to retail investors for the issue.

Axis Capital, IIFL Securities, Nuvama Wealth Management and SBI Capital Markets are the book running lead managers to the issue, while Link Intime India has been appointed as the registrar to the issue. The stock will be listed at both BSE and NSE.