Medi Assist Healthcare Services, a key player in India's healthcare sector, has initiated its IPO journey by submitting its draft red herring prospectus to SEBI. In an unconventional move, the IPO will exclusively consist of an offer-for-sale, with existing shareholders and promoters offering up to 2.80 crore equity shares. This unique structure means the company itself won't receive proceeds from the IPO. Medi Assist is a significant healthcare benefits administrator, boasting substantial market shares in both retail and group health insurance. The IPO will involve various investor categories, signalling an exciting phase in the company's evolution.
Medi Assist Healthcare Services, a prominent player in India's healthcare landscape, has embarked on a transformative journey by submitting its draft red herring prospectus (DRHP) to SEBI, the capital markets regulator, signalling its intent to launch an initial public offering (IPO). Headquartered in Bengaluru, Medi Assist plays a pivotal role as a healthcare benefits administrator. The unveiled DRHP outlines a unique IPO structure, one that exclusively comprises an offer-for-sale (OFS) mechanism. In this arrangement, existing shareholders and company promoters will tender up to 2.80 crore equity shares, each with a face value of Rs 5. Notably, the company itself will not receive any proceeds from this offering.
Key stakeholders, including Vikram Jit Singh Chhatwal, Medimatter Health Management, Bessemer Health Capital LLC, Investcorp Private Equity Fund I, Vivek Pandit, Rahul M Khanna, Shankar Rao Palepu, Pramod Manohar Ahuja, Keshav Sanghi, Amitkumar Gajendrakumar Patni, and other associated entities, are set to actively participate in this OFS. Medi Assist Healthcare Services is intrinsically intertwined with India's insurance ecosystem, acting as a crucial intermediary bridging insurers and policyholders, insurance providers and healthcare institutions, and government bodies and beneficiaries of public health schemes.
Significantly, it holds the distinction of being India's largest healthcare benefits administrator, managing a substantial share of premium funds under both retail and group policies. The F&S Report highlights the company's dominance, showcasing an impressive market share of 14.83 percent in the retail health insurance sector and a commanding 41.71 percent in the group health insurance segment. As of the conclusion of the 2023 financial year, the company had overseen a staggering Rs 14,574.65 crore in health insurance premiums, encompassing both group and retail policies. This figure underscores substantial growth, with a remarkable compound annual growth rate (CAGR) of 35.67 percent from the Rs 7,918.49 crore recorded at the conclusion of the 2021 financial year.
As of March 31, 2023, the company had nurtured strategic partnerships with 36 insurance firms, spanning the Indian market and extending to the global arena. The IPO allocation strategy has been meticulously structured: 50 percent of the shares will be reserved for qualified institutional bidders (QIBs), with an additional 15 percent set aside for non-institutional investors (NIIs). The remaining 35 percent will be accessible to retail investors, promising a well-rounded participation opportunity. This momentous IPO endeavour is being expertly facilitated by a consortium of book-running lead managers, including Axis Capital, IIFL Securities, Nuvama Wealth Management, and SBI Capital Markets.
Simultaneously, the critical role of the registrar in the issue has been entrusted to Link Intime India. Following the IPO, the stock is poised for trading on both the BSE and NSE, marking an exciting new chapter in the journey of Medi Assist Healthcare Services as it steps into the realm of publicly traded companies. With a strategic allocation strategy catering to various investor categories, it promises an inclusive participation opportunity. As the IPO unfolds, it marks a significant milestone in the company's evolution, offering investors a chance to be part of its promising future in the healthcare landscape.
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