Medi Assist Kicks off 2024 with INR 1172 Cr IPO; Sets Price Band at INR 398-417 Equity Share

The share allocation for anchor investors will take place on January 12 whereas the IPO window will close two days after the launch i.e. on January 17.

Third party health insurance administrator Medi Assist Healthcare Services has stepped into the trading floor with the launch of its Initial Public Offering (IPO) on January 15, making it 2024’s maiden market subscription. The price band for the INR 1172 Cr IPO has been set at INR 398- 417 per equity share having a face value of INR 5.

Launched in 2002, Medi Assist Healthcare Services is a Health Tech and Insurance Tech company. It liaises between health insurance companies, hospital networks, government, policyholders and beneficiaries. Through its collaboration with 36 insurance companies in India and abroad, it also provides cashless hospitalisation services.

The share allocation for anchor investors will take place on January 12 whereas the IPO window will close two days after the launch i.e. on January 17.

Medi Assist’s IPO Breakdown

In the latest IPO, 35% of the shares offered are available for retail investors. Medi Assist has reserved a maximum of 50% shares for Qualified Institutional Buyers and a minimum of 15% for Non-Institutional Institutional Investors (NII).

The promoters and investors of the Bengaluru-based company will offload INR 2.8 Cr shares from their kitty. Investors can subscribe to a lot of 35 shares or its multiples.

The Medi Assist IPO is valued at INR 1,171.58 Cr and involves an offer-for-sale (OFS) by various stakeholders, including investors and promoters. As a result, the selling shareholders will receive the total net proceeds from the sale, minus the expenses associated with the IPO.

Notable participants in the OFS include promoter Dr Vikram Jit Singh Chhatwal, Medimatter Health Management Private Limited, Bessemer Health Capital LLC, and Investcorp Private Equity Fund I.

In the last fiscal year, the company posted revenue of INR 570.29 million. The IPO of Medi Assist will be listed on the NSE and the BSE on the IPO mainboard.

Medi Assist Healthcare Services Limited offers services to insurance companies through its subsidiaries, Medvantage TPA, Raksha TPA, and Medi Assist TPA. These subsidiaries handle health insurance claims on behalf of insurance companies and provide services like managing networks, administering policies, and customer support.

The company offers additional healthcare services such as hospitalisation, call centre support, customer relations, contract management, billing, and claims processing through its subsidiaries IHMS, Mayfair India, Mayfair UK, Mayfair Group Holding, Mayfair Philippines, and Mayfair Singapore.

Medi Assist has established a widespread healthcare provider network in India, comprising 18,754 hospitals across 1,069 cities and towns, 31 states (including union territories), and 141 countries worldwide, as of September 30, 2023.

In its red herring prospectus (RHP), the company stated that no listed companies in India are engaged in a similar business to theirs and their subsidiaries.

Go Digit’s IPO Hurdle

Another Bengaluru-based Insurtech company Go Digit filed for an IPO proposal with SEBI in 2022. The company expected to raise up to INR 1,250 Cr via the fresh issue and offer 109,445,561 shares in the offer for sale.

The offer document was put in cold storage by the regulator and later returned. The company refiled its draft prospectus again in early 2023 after making certain changes to its employee stock appreciation rights scheme.

However, the new age insurer’s IPO plans hit a roadblock once again when it received a show cause notice and multiple advisories from the IRDAI.