Medi Assist IPO: Price Band Set at Rs 397-418 Per Share

Medi Assist Healthcare Services, a third-party insurance administrator backed by Bessemer Ventures and Investcorp, has announced the price band for its initial public offering (IPO). The price band has been set at Rs 397-418 per share, aiming to raise Rs 1,172 crore through the IPO.

IPO Details

The IPO, which will be the first of 2024, will open for subscription from January 15. The bidding for anchor investors will commence on January 12. The issue consists entirely of an Offer For Sale (OFS), where promoters and existing investors will sell 2.8 crore equity shares.

Selling Promoters and Investors

The selling promoters include company chairman Vikram Jit Singh Chhatwal, Medimatter Health Management, Bessemer Health Capital, and Investcorp Private Equity Fund. Under the offer, various shareholders will offload their shares, including Chhatwal, Medimatter Health Management, Bessemer, Investcorp, Vivek Pandit, Rahul M Khanna, Shankar Rao Palepu, and Palepu Neena Rao, among others.

Company Valuation

At the upper end of the price band, the company is valued at Rs 2,990 crore, according to Satish Gidugu, the chief executive of the company. Chhatwal and Bessemer Health Capital currently hold a combined 77% of the pre-issue shares, which will be diluted to 40% after the IPO.

Company Background

Medi Assist was founded by Sakshi Kabra in 2002 in Bangalore and later brought on board Bessemer Ventures in early 2011. In the same year, the Anil Ambani group acquired an 80% stake in the company, which was later sold to Investcorp. Investcorp is currently the single largest non-promoter shareholder with a 21.65% stake.

Business Operations

Medi Assist has a wide network, covering over 18,000 hospitals across 1,069 cities and 31 states. It partners with 35 insurers and primarily serves group covers/corporate clients, holding a 30% market share in this segment. Including retail, the company's overall market share stands at around 7%. Notably, Medi Assist covers 78% of the Nifty 50 companies.

Employee Strength and Revenue Sources

As of September 2023, the company employed approximately 6,200 people. Regarding revenue sources, only 10% of its revenue comes from central and state government-run mediclaim services.

Medi Assist Healthcare Services is set to launch its IPO on January 15, aiming to raise Rs 1,172 crore. With a strong presence in the healthcare industry and a wide network of hospitals and insurers, the company is poised for growth. Investors will be closely monitoring the performance of the IPO as it marks the beginning of the 2024 IPO season in India.