Medi Assist Healthcare Services Limited is launching its IPO. The opens for subscription on 15 January 2024 and will close on 17 January 2024.
What does Medi Assist Healthcare Services Limited do?
Medi Assist Healthcare Services Limited provides third-party administration services to insurance companies through its wholly-owned subsidiaries, including Medi Assist TPA, Medvantage TPA (since February 13, 2023), and Raksha TPA (since August 25, 2023). As a third-party administrator, the company processes health insurance claims and offers services such as policy administration, customer service, and network management.
Medi Assist TPA holds a notable market share in both retail and group health insurance markets. The company managed ₹14574.66 crore of health insurance premiums as of the end of FY 2023. The business collaborates with 35 insurance companies in India and globally.
In addition to third-party administration services, the company facilitates various healthcare and ancillary services, including hospitalization services, call center services, customer relations, contract management, billing services, and claims processing. The company has developed a comprehensive healthcare provider network across India and globally, encompassing 18,754 hospitals in 1,069 cities and towns across 31 states and 141 countries as of September 30, 2023.
The company, originally incorporated as Net Logistics Private Limited, and its nine subsidiaries, including those operating in India as TPAs, are subject to regulation by the Insurance Regulatory and Development Authority of India (IRDAI).
What is the issue size of Medi Assist Healthcare Services Limited IPO?
The entire public offer of the company is an offer for sale of equity shares aggregating up to 28.02 lakh shares.
Financial information and other valuation metrics (in crores)
| Particulars | As of March 31, 2023 | As of March 31, 2022 | As of March 31, 2021 |
|---|---|---|---|
| Total Assets | 705.72 | 602.23 | 545.30 |
| Total revenue | 518.96 | 412.02 | 345.57 |
| Net Cash and cash equivalents at year-end | 53.94 | 14.60 | 63.39 |
| Profit after taxes | 75.31 | 63.47 | 38.01 |
| EBITDA | 119.35 | 91.22 | 75.60 |
Risk factors to consider:
There are outstanding legal proceedings against their Promoters which are currently outstanding before the National Company Law Tribunal.
The majority of revenue for the company is generated through contracts with customers from its subsidiaries. Medi Assist TPA and Medvantage TPA which accounted for 96.32% of the revenue from contracts with customers in FY 2023.
The above subsidiaries have previously received show-cause notices from the Insurance Regulatory and Development Authority of India (IRDAI). Failure to comply with IRDAI inspections or any negative findings by the regulatory authority could have adverse effects on the business.
The company regularly deals with personal data, including sensitive medical information, as part of its normal operations. Failure to uphold the confidentiality of this data could lead to legal consequences and negatively impact the company’s reputation.
The company could face reputational damage due to negligence or misconduct within its healthcare service provider network.
Schedule of Medi Assist Healthcare Services Limited IPO
| Issue Period | 15th January to 17th January 2024 |
|---|---|
| Deadline for accepting UPI mandate | Until 5 PM on the issue closing day |
| Finalization of Allotment | January 18, 2024 |
| Initiation of Refunds | January 19, 2024 |
| Credit of Shares | January 19, 2024 |
| Date of Listing | January 22, 2024 |
| Mandate end date | February 01, 2024 |
| Anchor Investors Lock-In End Date (50% of the investment) | February 17, 2024 |
Anchor Investors Lock-In End Date (Remaining investment) April 17, 2024
Note: Given that the above schedule is tentative, it should be noted that the anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares, and 90 days after for the remaining portion.
How to apply to the Medi Assist Healthcare Services Limited IPO?
You can apply for the Medi Assist Healthcare Services Limited IPO using any supported UPI app by following two steps:
- Enter your bid on Kite
- Accept the UPI mandate on your phone
On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.
How to check the allotment status for the Medi Assist Healthcare Services Limited IPO?
You can check the allotment status for the Medi Assist Healthcare Services Limited IPO on the website of the Registrar and Transfer agent.