Medi Assist Healthcare Services IPO to open on Jan 15; price band, other details

The initial public offering (IPO) of Medi Assist Healthcare Services will open for subscription on Monday, January 15, 2024. The company will be offering its shares in the price band of Rs 397-418 apiece and in the lost size of 35 equity shares and its multiples thereafter. The bidding for the issue will close on Wednesday, January 17.

Medi Assist Healthcare Services, incorporated in June 2002, is a health-tech and insurance-tech company that manages health benefits for employers, retail members, and public health schemes, primarily serving insurance companies. Medi Assist offers medical insurance and cashless hospitalisation through a network of healthcare service providers.

The promoters and other selling shareholders will be offloading 2,80,28,168 equity shares via an offer-for-sale (OFS). They would be looking to raise a total of Rs 1,171.58 crore via IPO route at the upper limit of the price band.  Promoters Dr Vikram Jit Singh Chhatwal, Medimatter Health Management, Bessemer Health Capital, Investcorp Private Equity Fund I and other nine selling shareholders will offload stakes. The company will not receive any proceeds from the IPO.

Medi Assist Healthcare acts as a mediator between general and health insurance companies and their insured members, insurance companies and healthcare providers, and the Government and beneficiaries of public health schemes. The company collaborated with 36 insurance companies in India and worldwide, as of March 31, 2023.

As of March 31, 2023, the company has established a healthcare network across India, with over 14,000 hospitals in 967 cities and towns in 32 states and union territories. During FY2023, the company settled 5.27 million claims, comprising 2.44 million in-patient claims and 2.83 million out-patient claims.

Medi Assist Healthcare reported a net profit at Rs 22.49 crore with a revenue of Rs 312.03 crore for the period ended on September 30, 2023. The company clocked a net profit at Rs 74.04 crore with a revenue of Rs 518.96 crore for the financial year ended on March 31, 2023.

Medi Assist Healthcare has reserved 50 per cent shares for the qualified institutional buyers, while retail investors will get 15 per cent of allocation for the issue. Non-institutional investors will get the remaining 15 per cent of the allocated in the issue.

Axis Capital, IIFL Securities, Nuvama Wealth Management and SBI Capital Markets are the book-running lead managers for the issue, while Link Intime India is the registrar for the IPO of Medi Assist Healthcare. The shares of the company shall be listed on both BSE and NSE with January 22 as the listing date.

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