Medi Assist, a Bengaluru-based company providing health benefits administration services, has filed a DRHP with the Sebi for raising around Rs. 840 crore through a public issue. If the plan goes through this shall be the country's first IPO by an health insurance TPA or third- party administrator.
The IPO comprises of an offer for sale (OFS) and a partial stake sale by two private equity investors namely Bessemer Ventures and Investcorp, reported the online business daily Moneycontrol citing a source.
Bessemer Ventures and Dr Vikram Jit Singh Chhatwal, executive chairman and whole-time director, have a holding of 45.51 percent and 31.63 percent, respectively. Investcorp has a 21.65 percent stake in the firm.
Law firms Shardul Amarchand Mangaldas and Khaitan & Co are the legal advisers and the bankers. While investment banks hired to work on the IPO are Axis Capital, Edelweiss Financial Services, IIFL Capital and SBI Capital.
During the last year, Medi Assist managed health insurance premium worth Rs. 7829.5 crore. The company commands a market share of 29 percent of the private health insurance segment that is catered to by health benefits administrators in India, on the basis of premium under management for the FY. Over 60 percent of the company's revenue came from 7800 companies across sectors. As of December 31, 2020, 48,892 insurance agents and 106 brokers were registered with the firm.
As per the report, Medi Assist has become the country's largest health benefits TPA based on revenue mop up and premium services for health insurance policies.
Medi Assist in the past three years has become the country's largest health benefits administrator in terms of revenue and premium services for health insurance policies, according to the report.