Medi Assist's Rs 1,100 crore IPO to open on Jan 15

Medi Assist's Rs 1,100 crore IPO to open on Jan 15

Rebello DominicUpdated: Wednesday, January 10, 2024, 04:04 PM IST
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Dr. Vikram Jit Singh Chhatwal, Chairman and Whole-time Director, Medi Assist Healthcare Services Ltd. and Mr. Satish V.N. Gidugu, Whole-time Director and Chief Executive Officer, Medi Assist Healthcare Services Ltd. at the press conference in connection to their Initial public Offer (IPO) |

Medi Assist Healthcare Services, a provider of third-party administration services to insurance firms, is gearing up to launch its Initial Public Offering (IPO) on January 15. The inaugural public offering will conclude on January 17, with the bidding for anchor investors scheduled for January 12.

The IPO comprises a complete offer for sale of up to 2.8 crore equity shares of Medi Assist by its promoters and existing shareholders. Notable entities participating in the offer for sale include Vikram Jit Singh Chhatwal, Medimatter Health Management, Bessemer India Capital Holdings II Ltd, Bessemer Health Capital LLC, and Investcorp Private Equity Fund I.

As the offering is exclusively an Offer For Sale (OFS), the company itself will not receive any proceeds, with all funds directed to the selling shareholders.

Creating awarness about mediclaim is the job of Health Insurance companies. With rising awareness, Medi Assist is expecting health insurance penetration to grow from the current 16 per cent to 33 per cent in the next five years, a top company official said.

The Covid pandemic was a learning period for the company. It was a challenge and we worked 24X7 to assist patients. We invested in technology, which turned out to be a game changer for us in the coming years, said Satish Gidugu, CEO, Medi Assist.

The premiums serviced by TPAs is expected to grow at a CAGR of 24%, he said.

Till there is insurance, there will always be frauds and overcharging. But with the technology and our experience, we are able to counter them, he added.

(L-R) Mr. Gautam Kothari, Vice President, SBI Capital Markets Limited; Mr. Ashish Kumbhat, Executive Director& Co-Head, ECM, Axis Capital Limited; Mr. Mathew George, Chief Financial Officer, Medi Assist Healthcare Services Ltd; Dr. Vikram Jit Singh Chhatwal, Chairman and Whole-time Director, Medi Assist Healthcare Services Ltd; Mr. Satish V.N. Gidugu, Whole-time Director and Chief Executive Officer, Medi Assist Healthcare Services Ltd; Mr. Niraj Didwania, Sr.VP - Strategy, Medi Assist Healthcare Services Ltd; Mr.Siddharth Shah, Director - Equity Capital Markets, Nuvama Wealth Management Limited at the press conference in connection to their Initial public Offer (IPO) and Mr. Pinkesh Soni, Vice President,  IIFL Securities Limited

(L-R) Mr. Gautam Kothari, Vice President, SBI Capital Markets Limited; Mr. Ashish Kumbhat, Executive Director& Co-Head, ECM, Axis Capital Limited; Mr. Mathew George, Chief Financial Officer, Medi Assist Healthcare Services Ltd; Dr. Vikram Jit Singh Chhatwal, Chairman and Whole-time Director, Medi Assist Healthcare Services Ltd; Mr. Satish V.N. Gidugu, Whole-time Director and Chief Executive Officer, Medi Assist Healthcare Services Ltd; Mr. Niraj Didwania, Sr.VP - Strategy, Medi Assist Healthcare Services Ltd; Mr.Siddharth Shah, Director - Equity Capital Markets, Nuvama Wealth Management Limited at the press conference in connection to their Initial public Offer (IPO) and Mr. Pinkesh Soni, Vice President, IIFL Securities Limited |

Headquartered in Bengaluru, Medi Assist operates as a health-tech and insurtech company, specializing in administering health benefits for employers, retail members, and public health schemes. While the company primarily caters to insurance firms, it also acts as an intermediary connecting general and health insurance companies, insured members, healthcare providers (such as hospitals), and government entities managing public health schemes. The company has a 20.17 per cent share in the premium serviced market. Medi Assist's revenue are 28.64 per cent, EBITA is 48.77 per cent and Profit After Tax is 56.42 per cent of the overall TPA market.

Axis Capital, Nuvama Wealth Management, IIFL Securities, and SBI Capital Markets have been appointed as merchant bankers to provide advisory services to the company in connection with the IPO. The equity shares resulting from the IPO will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

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