Bessemer Health Capital-backed Medi Assist Healthcare refiles preliminary IPO papers

28 Aug 2023 , 09:56 AM

Medi Assist Healthcare Services, a health benefits administrator based in Bengaluru, has resubmitted preliminary documents to the SEBI, the capital markets regulator, with the intention of raising funds through an initial public offering (IPO).

The IPO offering exclusively consists of a 2.8 crore share offer-for-sale (OFS) by the company’s promoters and investors. Consequently, the company will not generate any proceeds from this offering.

The individuals behind Medi Assist include Dr. Vikram Jit Singh Chhatwal, Medimatter Health Management, and Bessemer Health Capital LLC, all serving as promoters. In this context, Chhatwal will be divesting their complete personal shareholding of 25.39 lakh shares (3.61%), along with 5.37 lakh shares jointly owned with Medimatter Health Management, through the OFS. Medimatter Health Management, which encompasses Chhatwal’s shares, will sell 1.24 crore shares, while Bessemer Health Capital LLC will divest over 66.06 lakh shares through the OFS. Collectively, Bessemer India Capital Holdings II (BICH-II) and Bessemer Health own 44.51% of the company’s shares.

Investor Investcorp Private Equity Fund I, a unit scheme managed by Investcorp India Asset Managers under Investcorp Infrastructure Fund 1, intends to sell 62.75 lakh shares through the OFS, compared to its current shareholding of 1.49 crore shares (21.18%). Other shareholders participating in the OFS include Vivek Pandit, Rahul M Khanna, Shankar Rao Palepu, Pramod Manohar Ahuja, Keshav Sanghi, and Amitkumar Gajendrakumar Patni.

According to the preliminary prospectus, Medi Assist holds the position of India’s largest health benefits administrator in terms of managed premiums for retail and group policies. The company commands a market share of approximately 42% within the group health insurance market as of FY22. As of March of this year, the company collaborates with 36 insurance companies across both Indian and global markets. Medi Assist has established an expansive network spanning 14,301 hospitals across 967 cities, towns, and 32 states (including union territories) within India.

The book running lead managers for this offering are Axis Capital, IIFL Capital Services, Nuvama Wealth Management, and SBI Capital Markets.