Medi Assist Healthcare Services, supported by Bessemer Ventures and Investcorp, is preparing for its initial public offering (IPO) this year. The IPO will be available for subscription from January 15 to January 17. The company offers third-party administration services to insurance companies. has revealed the price band for its upcoming Initial Public Offering (IPO). The price range is set at Rs 397-418 per share for the public issue valued at Rs 1,171.58 crore.
Key Highlights of Medi Assist Healthcare Services IPO
· Modi Assist IPO Price band set at Rs 397-418 for Rs 1,171.58-cr IPO
· Opening on January 15, debuting on bourses on January 22
· First listed entity in the third-party administration services sector
· Entire issue proceeds go to selling shareholders
· Promoters and major investors among selling shareholders
· Reserved portions for qualified institutional buyers, non-institutional investors, and retail investors
· Pan-India healthcare provider network with 18,754 hospitals
· Consolidated net profit of Rs 24.3 crore for the six months ended September FY24
Details of the Upcoming IPO
Modi Medi Assist IPO date: The issue is scheduled to open on January 15, comprising 2.8 crore shares. Investors have until January 17 to participate, while the anchor book will be available for a single day on January 12. Notably, this IPO is exclusively an offer-for-sale (OFS) by various existing shareholders, including promoters and investors.
Major Selling Shareholders and Ownership Structure
Promoters Dr Vikram Jit Singh Chhatwal, Medimatter Health Management, and Bessemer Health Capital LLC, along with Investcorp Private Equity Fund I, are the principal selling shareholders in the OFS. Additional shareholders will collectively offload 1.38 lakh shares. The red-herring prospectus reveals that promoters hold 77.14 percent shareholding, with Bessemer India Capital Holdings II being the major shareholder with a 35.13 percent stake.
Details of Selling Shareholders
Dr Vikram Jit Singh Chhatwal and Bessemer Health Capital LLC will completely exit the company by selling their entire personal shareholding through the OFS. The remaining 22.86 percent shares are held by public shareholders, including Investcorp Private Equity Fund I with a 21.18 percent stake.
Company Overview and Revenue Breakdown
Medi Assist Healthcare Services, backed by Bessemer Ventures & Investcorp, operates through three wholly owned subsidiaries: Medi Assist TPA, Medvantage TPA, and Raksha TPA. These subsidiaries contributed to 92.98 percent of revenue in the six months ending September FY24. The company reported a consolidated net profit of Rs 24.3 crore during this period, with revenue from operations increasing to Rs 301.9 crore.
Medi Assist Healthcare Lot Size: Reserved Shares and Investor Details
Half of the total shares in the offering are set aside for qualified institutional buyers, 15 percent for non-institutional investors, and the remaining 35 percent for retail investors. The minimum bid is for 35 equity shares, and retail investors have the option to apply for a minimum of Rs 14,630 for 35 shares, while the maximum investment limit is Rs 1,90,190 for 455 shares.
Market Debut and Industry Milestone
Upon debuting on January 22, Medi Assist Healthcare Services is set to become the first listed entity in the third-party administration services sector for insurance companies.
Conclusion
Medi Assist Healthcare Services is a leading provider of third-party administration services to insurance companies in India. The company is launching its IPO on January 15, 2023, with a price band of Rs 397-418 per share. This is a unique opportunity to invest in the first listed entity in this sector, which has a pan-India network of 18,754 hospitals, a strong financial performance, and a diversified revenue stream. If you are interested in investing in the future of healthcare, you can subscribe to the IPO from January 15 to January 17, 2023.
Source- moneycontrol.com
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