Key Points for Medi Assist IPO
Medi Assist Healthcare Services Limited is set to launch its initial public offering (IPO) with an offer for sale of 2.8 crore shares, totaling ₹1,171.58 Crore. Here are the key points potential investors should know:
Leading Position in the Insurance Sector:
Medi Assist holds a prominent position as a Third-Party Administrator (TPA) in the insurance sector, offering technology-based services.
It occupies a niche place in the market, with no comparable peers having a similar business model.
Market Dominance:
With a 42% market share of the TPA market by premiums, Medi Assist is the industry leader.
This implies a substantial 21% share in the overall health insurance market, indicating its significant presence and influence.
Offer Details:
The IPO is scheduled from 15 to 17 Jan 2024.
The issue size is ₹1,171.58 crore, with a price band set between ₹397 to ₹418 per share.
Lot size for retail investors is 35 shares, with various lot sizes for different investor categories.
The IPO will be listed on both BSE and NSE.
Tentative IPO Timelines:
Basis of Allotment: 18 Jan, 2024
Initiation of Refunds: 19 Jan, 2024
Credit of shares to Demat: 19 Jan, 2024
Listing Date: 22 Jan, 2024
About the Company:
Founded in June 2002, Medi Assist is a health-tech and insurance-tech company managing health benefits for employers, retail members, and public health schemes.
It collaborates with 36 insurance companies in India and worldwide.
The company’s revenue from the retail portfolio has shown steady growth over the years.
As of March 31, 2023, Medi Assist has an extensive healthcare network across India, comprising over 14,000 hospitals in 967 cities and towns.
Financial Performance:
The revenue generated by the retail portfolio for FY2021, FY2022, and FY2023 was ₹494.68 million, ₹579.84 million, and ₹570.29 million, respectively.
The company settled 5.27 million claims during FY2023, indicating its operational efficiency and scale.
Objects of the Issue:
The primary objective of the IPO is to achieve the benefits of listing the Equity Shares on the Stock Exchanges.
Listing will enhance visibility, brand recognition, and provide liquidity to existing shareholders.
However, all proceeds from the IPO will go to the Selling Shareholders, with no funds directed to the company.
In conclusion, Medi Assist Healthcare Services Limited’s IPO presents an opportunity for investors to participate in a leading player in the health-tech and insurance-tech space. With its dominant market position, robust financial performance, and extensive network, the IPO is expected to garner significant interest from investors seeking exposure to the healthcare sector.