Medi Assist Healthcare Services IPO: Issue opening on January 15, sets IPO price at Rs 397-418 apiece

10 Jan 2024 , 10:00 AM

Bessemer Ventures and Investcorp-backed Medi Assist Healthcare Services, a provider of third-party administration services to insurance companies, is gearing up for its upcoming initial public offering (IPO), marking the second IPO of the year. 

Scheduled to open for subscription on January 15 and closing on January 17, the IPO price band is set at Rs 397-418 per share. The anchor book, part of the qualified institutional buyers (QIB) portion, will open on January 12. 

Investors can bid for a minimum of 35 shares, and the IPO comprises an offer-for-sale (OFS) of 2.8 crore equity shares by selling shareholders, with no fresh issue component.

The selling shareholders in the OFS include Promoters Dr Vikram Jit Singh Chhatwal, Medimatter Health Management, Bessemer Health Capital LLC, and Investcorp Private Equity Fund I. Notable individuals such as Vivek Pandit, Rahul M Khanna, Shankar Rao Palepu, Pramod Manohar Ahuja, Keshav Sanghi, Amitkumar Gajendrakumar Patni, Arihant Patni, Jyoti Ahuja, and Ranjan Surajprakash Sanghi will also participate in the OFS. Promoters Dr Vikram Jit Singh Chhatwal and Bessemer Health Capital LLC will exit the company by selling their entire personal shareholding via OFS.

With a substantial market share in the retail and group health insurance segments, Medi Assist Healthcare Services acts as a crucial intermediary between insurance companies, policyholders, healthcare providers, and government health schemes. 

The Bengaluru-based company, working with 35 insurance companies globally, boasts a pan-India healthcare provider network and recorded impressive financials in FY23, with a net consolidated profit of Rs 75.3 crore and revenue from operations at Rs 504.9 crore. While its net profit for H1 FY24 declined to Rs 24.3 crore, revenue from operations increased to Rs 301.9 crore.

The IPO shares’ basis of allotment will be finalized by January 18, and eligible investors can expect the equity shares to be credited to their demat accounts by January 19.

Medi Assist Healthcare IPO Reservation:

• QIB Shares Offered: Not more than 50% of the Net Issue
• Retail Shares Offered: Not less than 35% of the Net Issue
• NII (HNI) Shares Offered: Not less than 15% of the Net Issue

Trading in Medi Assist IPO shares is scheduled to commence on BSE and NSE from January 22, adhering to the T+3 timeline. 

Axis Capital, IIFL Capital Services, Nuvama Wealth Management, and SBI Capital Markets are the book-running lead managers for the public issue.