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Medi Assist Healthcare Services Ltd IPO
Status:
Overview
IPO date
15 Jan 2024 to 17 Jan 2024
Face value
₹ 0 per share
Price
₹ 397 to ₹418 per share
Issue Size
28,028,168 shares
(aggregating up to ₹ 1171.58 Cr)
(aggregating up to ₹ 1171.58 Cr)
Allotment Date
18 Jan 2024
Listing at
NSE
Issue type
Book Building
Sector
Objectives of Medi Assist Healthcare Services Ltd IPO
Initial public offering of 28,028,168* equity shares of face value of Rs. 5 each (the "Equity Shares") of Medi Assist Healthcare Services Limited ("The Company" or "The Company" or "The Issuer") for cash at a price of Rs. 418 per equity share (the "Offer Price") aggregating to Rs. 1171.58 crores (the "Offer") comprising an offer for sale of 2,539,092* equity shares aggregating to Rs. 106.13 crores by Vikram Jit Singh Chhatwal, 12,468,592** equity shares* aggregating to Rs. 521.19 crores by Medimatter Health Management Private Limited ("Medimatter Health", and collectively with Vikram Jit Singh Chhatwal, the "Promoter Selling Shareholders"), 6,606,084* equity shares aggregating to Rs. 276.13 crores by Bessemer Health Capital llc ("Bessemer Health" or the "Promoter Group Selling Shareholder"), 6,275,706* equity shares aggregating to Rs. 262.33 crores by Investcorp Private Rquity Fund i (the "Investor Selling Shareholder"), and 138,694 equity shares aggregating to Rs. 5.80 crores by the other selling shareholders (as defined hereinafter and together with the promoter selling shareholders, promoter group selling shareholder and investor selling shareholder, the "Selling Shareholders" and such offer by the selling shareholders, the "Offer for Sale"). The offer shall constitute 40.70% of the post-offer paid-up equity share capital of the company.
*Subject to finalization of basis of allotment
**Includes 537,080 equity shares held jointly with Vikram Jit Singh Chhatwal
Medi Assist Healthcare Services Ltd IPO Strategy
- Maintain its Leadership Position among Group Accounts.
- Continue Pursuing Inorganic Growth Opportunities.
- Continue to Enhance its Technology Platforms.
- To Increase its Share in the Retail Segment.
About Medi Assist Healthcare Services Ltd
Medi Assist Healthcare Services Limited was formerly incorporated on June 7, 2000 as a Private Limited Company with the name 'Net Logistics Private Limited'. Subsequently, name of the Company was changed to 'Medi Assist Healthcare Services Private Limited' on November 21, 2012. Upon the conversion to a Public Company, the name was changed to 'Medi Assist Healthcare Services Limited' through fresh Certificate of Incorporation issued by the RoC on March 20, 2018.
The Company is India's largest health benefits administrator in terms of revenues and premium serviced for health insurance policies. Under the TPA Regulations, insurance companies are the Main clients which serve as an intermediary between (a) general and health insurance companies and the insured members (under retail, corporate and insurance backed public health insurance policies), (b) insurance companies and healthcare providers (such as hospitals), and (c) the Government and beneficiaries of public health schemes.
The Company has developed a pan-India healthcare provider network which comprises 18,754 hospitals across 1,069 cities and towns and 31 states in India and network across 141 countries globally, as on September 30, 2023. It offer Insurance Companies, seamless exchange of insured member and claims Information, claims processing, fraud detection, management of cashless healthcare provider network, enabling final payout to insured members and hospitals and data analytics, among others.
The Company was registered as a Third Party Administrator (TPA) with IRDAI in 2002. In December 2010, Medimatter Health acquired equity stake into the Company from Reliance Capital Limited and Medybiz Private Limited. On May 27, 2017, Company acquired business of Medicare Insurance TPA Services (India) Private Limited as going concern through slump sale, which became effective from June 29, 2018.
Medi Assist TPA acquired DHS TPA in 2018. On 17 February 2018, Medybiz Services Private Limited (MSPL) merged with Company through Scheme of Amalgamation and the entire business undertaking of MSPL, was transferred in the Company effective from April 1, 2018. The amalgamation between the Company and Medybiz Services Private Limited (MSPL) was made effective from December 9, 2019.
In 2019-20, through Scheme of Arrangement between the Company and Mandala, the entire undertaking of the Consumer Facing Health and Wellness Division of the Company demerged and transferred in Mandala and the Scheme of Demerger became effective from December 4, 2020.
In October 2022, the Company acquired 10,000 equity shares of International Healthcare Management Services Private Limited from Mayfair Group Holding Subcontinent Limited and Nicholas Taylor, constituting 100% of its equity share capital, subsequent to which, IHMA became a wholly-owned subsidiary of the Company.
In 2022, Medi Assist TPA acquired Medicare Insurance TPA Services (India) Pvt. Ltd. In 2023, the Company acquired Mayfair We Care.
In 2023, the Company acquired Raksha Health Insurance TPA Private Limited and Raksha TPA became a wholly-owned subsidiary of Medi Assist TPA on August 25, 2023.
The Company came up with an Initial Public Offering of issuing 28,028,168 Equity Shares through Offer for Sale by raising capital from public aggregating to Rs 1172 Crores in January, 2024.
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T&C*
Strengths vs Risks of Medi Assist Healthcare Services Ltd
Know the pros & cons
Strengths
Well Established Third Party Administrator in India.- Scalable technology-enabled infrastructure addressing the needs of all constituents of the health insurance ecosystem.
- Longstanding relationships with Indian insurance companies.
- Diversified base of Group Accounts with strong relationships.
- Attractive contracts with a pan-India healthcare provider network to provide discounted rates and/or preferential packages to its customers.
- The Company's ability to integrate acquisitions with its business and consolidating its position in the industry.
- Experienced management team and institutional shareholders.
Risks
- The company's inability to effectively manage and expand its network of healthcare providers may have an adverse effect on its business, results of operations and financial condition.
- The company derives a significant portion of its revenues from a limited number of clients and the loss of one or more such clients could adversely affect its business and prospects.
- The report of the previous statutory auditors of the Company and one of its Subsidiaries, Medi Assist TPA, contains certain disclaimers of opinion, and the reports of the current statutory auditors of the Company and one of the Subsidiaries, Medi Assist TPA, contain other matter and emphasis of matter paragraphs, as applicable.
- The company's business is significantly dependent on group accounts in certain industries, and any adverse developments affecting such industries may adversely affect its business and results of operations. In addition, any termination or adverse change in the company relationship or arrangements with insurance companies or corporates could adversely affect its business, results of operations and financial condition.
- The company has acquired certain entities in the recent past, including outside of India, and may continue to do so in the future. Any failure to realize the anticipated benefits of its acquisitions may have an adverse effect on the company business, results of operations, financial condition and cash flows.
- There are outstanding legal proceedings involving the Company, the Directors, the Promoters and the
Subsidiaries.
- The company is dependent on its Directors, Key Managerial Personnel and Senior Management, and the loss of, or the company inability to attract or retain these persons could adversely affect its business, results of operations and financial condition.
- The company revenues and profitability are dependent on its premium under management, which may decline.
- The company's business is dependent on the continued demand for benefits administration services by insurance companies, corporates and the Central and State Governments.
- The company have certain contingent liabilities that may adversely affect its financial condition and results of operations.
- Significant disruptions in the company information technology systems, its inability to maintain and upgrade the company information technology systems, or breaches of data security could adversely affect its reputation, business and results of operations.
- The company has had negative cash flows from investing and financing activities in the past and may continue to have negative cash flows in the future.
- The company has, in the past, failed to make timely regulatory filings with the RoC.
- Certain of the company Subsidiaries have availed bank guarantees, and are required to comply with certain restrictive covenants under its financing agreements. Any non-compliance will lead to an event of default resulting in repayment of the facility on demand, suspension of further disbursements or cancellation of the facility, which may adversely affect its business, results of operations, financial condition and cash
flows and impact dividends and distributions of the Subsidiaries to the Company.
- The company's business is subject to various laws and regulations and its inability to comply with them may adversely affect the company business, results of operations and reputation.
- The company have commissioned an industry report from Frost & Sullivan (India) Private Limited which has been used for industry related data in this Draft Red Herring Prospectus. Accordingly, prospective investors are advised not to place undue reliance on such information.
- The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interests with its shareholders.
- Conflicts of interest may arise out of common business objects shared by the Company, its Subsidiaries, The company Group Companies and the Promoters, which may affect the company business, results of operations and financial conditions.
- Non-compliance with the Insurance Regulatory and Development Authority of India's (IRDAI)
inspections or any adverse observations by the IRDAI may adversely affect the company business, results of operation or financial condition.
- The company Directors, Promoters, Key Managerial Personnel and Senior Management have interests in it other than reimbursement of expenses incurred and normal remuneration and benefits.
- The company service government-sponsored insurance schemes and are exposed to risks associated with program funding, enrollments and delayed payments that could adversely affect its business, results of operations and financial condition.
- The company handle personal data, including sensitive medical data, in the ordinary course of its business and any failure to maintain the confidentiality of such data could result in legal liabilities for it and adversely affect the compny reputation.
- Employee fraud or misconduct could harm it by impairing the company ability to attract and retain clients and subject it to significant legal liability and reputational harm.
- The company may be subject to wrongful claims processing that could result in the imposition of penalties or require it to pay damages under its contractual arrangements.
- If the company is unable to establish and maintain an effective system of internal controls and compliances, its business and reputation may be adversely affected.
- In the event of a disaster, the company disaster recovery and business continuity plans may fail, which could result in the loss of client data and adversely interrupt operations.
- The benefits administration industry is intensely competitive and the company inability to compete effectively may adversely affect its business, results of operations and financial condition.
- The company's inability to effectively manage its growth or to successfully implement the company business plan and growth strategy could have an adverse effect on its business, results of operations and financial condition.
- The inability to identify, obtain and retain intellectual property rights or technology could harm its business. Further, the company may infringe upon the intellectual property rights of others, any misappropriation of which could adversely affect its business and reputation.
- The company relies on its existing brands and the dilution of such brands could adversely affect the company business and prospects.
- Any failure to maintain the quality of the company services may negatively impact its brands and reputation and result in loss of the insurance companies and the group accounts serviced by it, which may adversely affect the company business and results of operations.
- The company may be subject to potential reputational harm arising from any negligence or misconduct by its healthcare service provider network.
- The company insurance coverage may not be sufficient or may not adequately protect it against all material hazards, which may adversely affect its business, results of operations and financial condition.
- The success of its business and operations are dependent upon certain quality accreditations which are valid for a limited time period. An inability to renew such accreditations in a timely manner, or at all, may adversely affect its business and prospects.
- The company conduct its business operations on leased premises, and the company inability to renew such leases may adversely affect of the operations.
- The Company's ability to pay dividends in the future will depend on its profitability and the financial performance of the company Subsidiaries.
- Some of the company Directors, Promoters, Key Managerial Personnel and Senior Management may have interests in entities which are in businesses similar to the company, and this may result in conflict of interest with it.
- The company will continue to be controlled by its Promoters after the completion of the Offer and their interests may differ from those of the other shareholders.
- The company corporate Promoters may not have adequate experience in the business activities undertaken by the Company and its Subsidiaries.
How to check the allotment status of Medi Assist Healthcare Services Ltd IPO?
Follow the steps
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
Select company from dropdown menu.
Enter details- PAN, Application number or DP client ID
Get your allotment status
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
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The IPO opens on 15 Jan 2024 & closes on 17 Jan 2024.
Medi Assist Healthcare Services Limited was formerly incorporated on June 7, 2000 as a Private Limited Company with the name 'Net Logistics Private Limited'. Subsequently, name of the Company was changed to 'Medi Assist Healthcare Services Private Limited' on November 21, 2012. Upon the conversion to a Public Company, the name was changed to 'Medi Assist Healthcare Services Limited' through fresh Certificate of Incorporation issued by the RoC on March 20, 2018.
The Company is India's largest health benefits administrator in terms of revenues and premium serviced for health insurance policies. Under the TPA Regulations, insurance companies are the Main clients which serve as an intermediary between (a) general and health insurance companies and the insured members (under retail, corporate and insurance backed public health insurance policies), (b) insurance companies and healthcare providers (such as hospitals), and (c) the Government and beneficiaries of public health schemes.
The Company has developed a pan-India healthcare provider network which comprises 18,754 hospitals across 1,069 cities and towns and 31 states in India and network across 141 countries globally, as on September 30, 2023. It offer Insurance Companies, seamless exchange of insured member and claims Information, claims processing, fraud detection, management of cashless healthcare provider network, enabling final payout to insured members and hospitals and data analytics, among others.
The Company was registered as a Third Party Administrator (TPA) with IRDAI in 2002. In December 2010, Medimatter Health acquired equity stake into the Company from Reliance Capital Limited and Medybiz Private Limited. On May 27, 2017, Company acquired business of Medicare Insurance TPA Services (India) Private Limited as going concern through slump sale, which became effective from June 29, 2018.
Medi Assist TPA acquired DHS TPA in 2018. On 17 February 2018, Medybiz Services Private Limited (MSPL) merged with Company through Scheme of Amalgamation and the entire business undertaking of MSPL, was transferred in the Company effective from April 1, 2018. The amalgamation between the Company and Medybiz Services Private Limited (MSPL) was made effective from December 9, 2019.
In 2019-20, through Scheme of Arrangement between the Company and Mandala, the entire undertaking of the Consumer Facing Health and Wellness Division of the Company demerged and transferred in Mandala and the Scheme of Demerger became effective from December 4, 2020.
In October 2022, the Company acquired 10,000 equity shares of International Healthcare Management Services Private Limited from Mayfair Group Holding Subcontinent Limited and Nicholas Taylor, constituting 100% of its equity share capital, subsequent to which, IHMA became a wholly-owned subsidiary of the Company.
In 2022, Medi Assist TPA acquired Medicare Insurance TPA Services (India) Pvt. Ltd. In 2023, the Company acquired Mayfair We Care.
In 2023, the Company acquired Raksha Health Insurance TPA Private Limited and Raksha TPA became a wholly-owned subsidiary of Medi Assist TPA on August 25, 2023.
The Company came up with an Initial Public Offering of issuing 28,028,168 Equity Shares through Offer for Sale by raising capital from public aggregating to Rs 1172 Crores in January, 2024.
Medi Assist Healthcare Services Ltd IPO will close on 17 Jan 2024.
- Well Established Third Party Administrator in India.
- Scalable technology-enabled infrastructure addressing the needs of all constituents of the health insurance ecosystem.
- Longstanding relationships with Indian insurance companies.
- Diversified base of Group Accounts with strong relationships.
- Attractive contracts with a pan-India healthcare provider network to provide discounted rates and/or preferential packages to its customers.
- The Company's ability to integrate acquisitions with its business and consolidating its position in the industry.
- Experienced management team and institutional shareholders.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Vikram Jit Singh Chhatwal | 2539092 | 3.69 | --- | --- |
| 2 | Medimatter Health Management P | 19240428 | 27.94 | 6771836 | 9.83 |
| 3 | Bessemer India Capital Holding | 20545108 | 29.84 | 20545108 | 29.84 |
- The company's inability to effectively manage and expand its network of healthcare providers may have an adverse effect on its business, results of operations and financial condition.
- The company derives a significant portion of its revenues from a limited number of clients and the loss of one or more such clients could adversely affect its business and prospects.
- The report of the previous statutory auditors of the Company and one of its Subsidiaries, Medi Assist TPA, contains certain disclaimers of opinion, and the reports of the current statutory auditors of the Company and one of the Subsidiaries, Medi Assist TPA, contain other matter and emphasis of matter paragraphs, as applicable.
- The company's business is significantly dependent on group accounts in certain industries, and any adverse developments affecting such industries may adversely affect its business and results of operations. In addition, any termination or adverse change in the company relationship or arrangements with insurance companies or corporates could adversely affect its business, results of operations and financial condition.
- The company has acquired certain entities in the recent past, including outside of India, and may continue to do so in the future. Any failure to realize the anticipated benefits of its acquisitions may have an adverse effect on the company business, results of operations, financial condition and cash flows.
- There are outstanding legal proceedings involving the Company, the Directors, the Promoters and the Subsidiaries.
- The company is dependent on its Directors, Key Managerial Personnel and Senior Management, and the loss of, or the company inability to attract or retain these persons could adversely affect its business, results of operations and financial condition.
- The company revenues and profitability are dependent on its premium under management, which may decline.
- The company's business is dependent on the continued demand for benefits administration services by insurance companies, corporates and the Central and State Governments.
- The company have certain contingent liabilities that may adversely affect its financial condition and results of operations.
- Significant disruptions in the company information technology systems, its inability to maintain and upgrade the company information technology systems, or breaches of data security could adversely affect its reputation, business and results of operations.
- The company has had negative cash flows from investing and financing activities in the past and may continue to have negative cash flows in the future.
- The company has, in the past, failed to make timely regulatory filings with the RoC.
- Certain of the company Subsidiaries have availed bank guarantees, and are required to comply with certain restrictive covenants under its financing agreements. Any non-compliance will lead to an event of default resulting in repayment of the facility on demand, suspension of further disbursements or cancellation of the facility, which may adversely affect its business, results of operations, financial condition and cash flows and impact dividends and distributions of the Subsidiaries to the Company.
- The company's business is subject to various laws and regulations and its inability to comply with them may adversely affect the company business, results of operations and reputation.
- The company have commissioned an industry report from Frost & Sullivan (India) Private Limited which has been used for industry related data in this Draft Red Herring Prospectus. Accordingly, prospective investors are advised not to place undue reliance on such information.
- The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interests with its shareholders.
- Conflicts of interest may arise out of common business objects shared by the Company, its Subsidiaries, The company Group Companies and the Promoters, which may affect the company business, results of operations and financial conditions.
- Non-compliance with the Insurance Regulatory and Development Authority of India's (IRDAI) inspections or any adverse observations by the IRDAI may adversely affect the company business, results of operation or financial condition.
- The company Directors, Promoters, Key Managerial Personnel and Senior Management have interests in it other than reimbursement of expenses incurred and normal remuneration and benefits.
- The company service government-sponsored insurance schemes and are exposed to risks associated with program funding, enrollments and delayed payments that could adversely affect its business, results of operations and financial condition.
- The company handle personal data, including sensitive medical data, in the ordinary course of its business and any failure to maintain the confidentiality of such data could result in legal liabilities for it and adversely affect the compny reputation.
- Employee fraud or misconduct could harm it by impairing the company ability to attract and retain clients and subject it to significant legal liability and reputational harm.
- The company may be subject to wrongful claims processing that could result in the imposition of penalties or require it to pay damages under its contractual arrangements.
- If the company is unable to establish and maintain an effective system of internal controls and compliances, its business and reputation may be adversely affected.
- In the event of a disaster, the company disaster recovery and business continuity plans may fail, which could result in the loss of client data and adversely interrupt operations.
- The benefits administration industry is intensely competitive and the company inability to compete effectively may adversely affect its business, results of operations and financial condition.
- The company's inability to effectively manage its growth or to successfully implement the company business plan and growth strategy could have an adverse effect on its business, results of operations and financial condition.
- The inability to identify, obtain and retain intellectual property rights or technology could harm its business. Further, the company may infringe upon the intellectual property rights of others, any misappropriation of which could adversely affect its business and reputation.
- The company relies on its existing brands and the dilution of such brands could adversely affect the company business and prospects.
- Any failure to maintain the quality of the company services may negatively impact its brands and reputation and result in loss of the insurance companies and the group accounts serviced by it, which may adversely affect the company business and results of operations.
- The company may be subject to potential reputational harm arising from any negligence or misconduct by its healthcare service provider network.
- The company insurance coverage may not be sufficient or may not adequately protect it against all material hazards, which may adversely affect its business, results of operations and financial condition.
- The success of its business and operations are dependent upon certain quality accreditations which are valid for a limited time period. An inability to renew such accreditations in a timely manner, or at all, may adversely affect its business and prospects.
- The company conduct its business operations on leased premises, and the company inability to renew such leases may adversely affect of the operations.
- The Company's ability to pay dividends in the future will depend on its profitability and the financial performance of the company Subsidiaries.
- Some of the company Directors, Promoters, Key Managerial Personnel and Senior Management may have interests in entities which are in businesses similar to the company, and this may result in conflict of interest with it.
- The company will continue to be controlled by its Promoters after the completion of the Offer and their interests may differ from those of the other shareholders.
- The company corporate Promoters may not have adequate experience in the business activities undertaken by the Company and its Subsidiaries.
The Issue type of Medi Assist Healthcare Services Ltd is Book Building.
The minimum application for shares of Medi Assist Healthcare Services Ltd is 35.
The total shares issue of Medi Assist Healthcare Services Ltd is 28028168.
Initial public offering of 28,028,168* equity shares of face value of Rs. 5 each (the "Equity Shares") of Medi Assist Healthcare Services Limited ("The Company" or "The Company" or "The Issuer") for cash at a price of Rs. 418 per equity share (the "Offer Price") aggregating to Rs. 1171.58 crores (the "Offer") comprising an offer for sale of 2,539,092* equity shares aggregating to Rs. 106.13 crores by Vikram Jit Singh Chhatwal, 12,468,592** equity shares* aggregating to Rs. 521.19 crores by Medimatter Health Management Private Limited ("Medimatter Health", and collectively with Vikram Jit Singh Chhatwal, the "Promoter Selling Shareholders"), 6,606,084* equity shares aggregating to Rs. 276.13 crores by Bessemer Health Capital llc ("Bessemer Health" or the "Promoter Group Selling Shareholder"), 6,275,706* equity shares aggregating to Rs. 262.33 crores by Investcorp Private Rquity Fund i (the "Investor Selling Shareholder"), and 138,694 equity shares aggregating to Rs. 5.80 crores by the other selling shareholders (as defined hereinafter and together with the promoter selling shareholders, promoter group selling shareholder and investor selling shareholder, the "Selling Shareholders" and such offer by the selling shareholders, the "Offer for Sale"). The offer shall constitute 40.70% of the post-offer paid-up equity share capital of the company.
*Subject to finalization of basis of allotment
**Includes 537,080 equity shares held jointly with Vikram Jit Singh Chhatwal