Medi Assist Healthcare IPO price band fixed at Rs 397-418 apiece

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Medi Assist Healthcare IPO price band fixed at Rs 397-418 apiece

Medi Assist Healthcare has fixed a price band of Rs 397-418 per share for its IPO, opening on January 15. The issue is completely an offer for sale of 2.8 crore shares.

In the OFS, promoter Vikram Jit Singh Chhatwal and promoter group entities Medimatter Health Management and Bessemer Health Capital will offload part of their stakes in the IPO. Chhatwal owns 3.69% stake in the company, while Medimatter and Bessemer hold 27.94% and 35.92% stakes, respectively.

Investors can bid for 35 shares in one lot and in multiples thereafter.

About 50% of the offer is reserved for qualified institutional buyers (QIBs), 35% for retail investors and 15% for non-institutional investors.

On listing, Medi Assist will be the first insurance third-party administrator (TPA) in India to hit the Street. The post-issue implied market cap will be around Rs 2,878 crore.

The company will not receive any funds from the IPO since it is completely an OFS and the entire proceeds will go to selling shareholders.

Also Read: Jyoti CNC Automation IPO sees healthy response on Day 2: Check subscription status, GMP and other detailsInvestcorp Private Equity Fund, which is the single largest non-promoter shareholder in the company with a 21.65% stake, will also sell part of its shares in the IPO-cum-OFS.

Other selling shareholders include Vivek Pandit, Rahul M Khanna, Shankar Rao Palepu, Pramod Manohar Ahuja, Keshav Sanghi, Amitkumar Gajendrakumar Patni, Arihant Patni, Jyoti Ahuja and Ranjan Surajprakash.

Medi Assist Healthcare provides third-party administration services to insurance companies through its wholly-owned subsidiaries. A third-party administrator is an organization that processes health insurance claims for insurance companies and provides services such as policy administration, customer service and network management, among others.

The company 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% of the group health insurance market, as of FY22.

For the six months ended September 2023, the company’s total income rose 26% year-on-year to Rs 312 crore, while net profit fell 39% to Rs 22.5 crore.

Axis Capital, IIFL Securities, Nuvama Wealth Management, and SBI Capital Markets are the book-running lead managers to the issue.

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