According to the fresh draft red herring prospectus (DRHP) filed on Friday, the initial public offering (IPO) is entirely an offer for sale of up to 2.8 crore equity shares of Medi Assist by promoters and existing shareholders
Mumbai:
Bengaluru-based third party administrator(TPA) Medi Assist Healthcare Services has filed preliminary papers with the capital markets regulator Sebi to raise funds through an initial share sale.
This is the company’s second attempt to go public.
Earlier, it had filed draft papers with the Securities and Exchange Board of India (Sebi) in May 2021, for floating an IPO but deferred the maiden public issue amid pandemic-induced rough market conditions.
According to the fresh draft red herring prospectus (DRHP) filed on Friday, the initial public offering (IPO) is entirely an offer for sale of up to 2.8 crore equity shares of Medi Assist by promoters and existing shareholders.
Those selling shares 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.
Chhatwal owns 3.69 per cent stake in the company, while Medimatter and Bessemer hold 27.94 per cent and 35.92 per cent stake, respectively.
Investcorp Private Equity Fund, which is the single largest non-promoter shareholder in the company with a 21.65 per cent stake, will also sell part of its shares in the IPO-cum-OFS.
Since the issue is completely an OFS, the company will not receive any proceeds and all the funds will go to the selling shareholders.
Explaining the reason for going public, the company said it is aimed at achieving the benefit of listing equity shares on the stock exchanges and carrying out OFS for the selling shareholders.
According to the draft prospectus, Medi Assist is the largest health benefits administrator in India in terms of premium under management for retail and group policies, with a market share of around 42 per cent of the group health insurance market, as of FY22.
As of March this year, the company worked with 36 insurance companies in India and globally.The company has developed a pan-India network, which comprises 14,301 hospitals across 967 cities and towns and 32 states (including union territories) in India.
For FY23, the company reported a total income of Rs 519 crore and a net profit of Rs 75.3 crore.
Medi Assist, the largest TPA, is a health-tech and insurtech company focused on administering health benefits across employers, retail members, and public health schemes.
The company offers claim administration, domiciliary, pre-policy health checks, portfolio management, cashless healthcare, reimbursement and hospitalization benefit services.
Axis Capital, Nuvama Wealth Management, IIFL Securities, and SBI Capital Markets have been appointed as merchant bankers to advise the company on the IPO.
The equity shares of the company will be listed on the BSE and NSE.