Medi Assist Healthcare Services IPO

Medi Assist Healthcare Services Limited

₹13,895 /35 sharesMinimum Investment

Medi Assist Healthcare Services IPO Listing Details

Listed OnIssue PriceListing PriceListing Gains
--₹418.00₹460.00₹42.00 (10.05%)

Medi Assist Healthcare Services IPO Details

Bidding DatesMin. InvestmentLot SizePrice Range
15 Jan ‘24 - 17 Jan ‘24₹13,89535₹397 - ₹418
Issue SizeIPO Doc
1171.58Cr
RHP PDF

Subscription Status As on 17 Jan '24, 5:00 PM

  • Qualified Institutional Buyers
    40.14x
  • Non-Institutional Investor
    14.85x
  • Retail Individual Investor
    3.19x
  • Total
    16.24x

About Medi Assist Healthcare Services

Medi Assist Healthcare Services Limited is a health-tech & insurance-tech company offering third-party administration (TPA) services to insurance companies. Through its wholly-owned subsidiaries, Medi Assist TPA, Medvantage TPA (effective February 13, 2023), and Raksha TPA (effective August 25, 2023), the company processes health insurance claims and provides various services such as policy administration and customer service. The company has a total of nine subsidiaries, comprising four direct subsidiaries and five indirect subsidiaries. Aside from managing third-party administration, the company also supports a range of healthcare and related services. These encompass hospitalization, call center assistance, customer relations, contract management, billing, and claims processing. Furthermore, the company serves as an intermediary among general and health insurance companies and their policyholders, insurance companies and healthcare providers (like hospitals), and the government and beneficiaries participating in public health schemes.;
Parent Organisation
Medi Assist Healthcare Services Limited
Founded
2012
Managing Director
Dr. Vikram Jit Singh Chhatwal

Strengths & Risks

  • The company has a pan-India healthcare provider network, comprising 18,754 hospitals across 1,069 cities and towns in 31 states (including union territories) as of September 30, 2023.
  • The company has served over 9,500 group accounts across sectors, as of March 31, 2023. Medi Assist TPA and Medvantage TPA collectively managed approximately Rs. 128.18 billion in group health insurance premiums. This represents 27.61% of India's overall group health insurance market.
  • Medi Assist provides comprehensive healthcare solutions encompassing an extensive in-patient and out-patient network and on-demand health services.
  • The company adopts a tech-driven approach apart from focusing on fraud management, waste and abuse management. This enables it to partner with insurance providers.
  • The company has a record of actively seeking acquisitions to strengthen its market position and integrate the acquired businesses to realize cost synergies.
  • Medi Assist has maintained a long-standing relationship with its client base. As of September 30, 2023 the average term of the company’s relationship with its four PSU clients was 20 years and with non-PSU sector insurance companies it had maintained an average term of nine years.
  • The company has a diverse corporate client base whose health insurance requirements it services. As of Sep 2023, it had serviced 78% of the Nifty 50 companies and 35% of the BSE 500 companies.
  • The company's top five clients contributed 78.23%, 78.95%, 77.97%, and 71.03% to total revenue for the financial years 2021, 2022, 2023, and the six months ending September 30, 2023. Dependence on these clients poses a risk, and losing them could impact the business adversely.
  • It has a significant reliance on group accounts, particularly in the IT/ITES and BFSI sectors. Adverse developments in these industries may impact the company's business and results.
  • The performance of subsidiaries is crucial to the overall success of the business. Utilizing cash flows from profitable subsidiaries for growth may be a part of strategic initiatives. However, adverse outcomes at the subsidiary level due to market conditions or regulatory challenges may affect the consolidated results and overall business performance.
  • As of September 30, 2023, the company’s subsidiaries have availed bank guarantees amounting to Rs. 33.73 crore, with compliance obligations. Non-compliance may lead to defaults, impacting business, results, financial condition, and dividends of the subsidiaries.
  • Various statutory obligations, with liabilities aggregating to Rs. 23.45 crore, Rs. 21.61 crore, Rs. 11.57 crore, and Rs. 18.24 crore for the financial years ending March 31, 2021, 2022, 2023, and September 30, 2023, respectively, pose a risk of penalties, legal actions, or financial liabilities.
  • The company's ability to pay dividends in the future depends on profitability and the financial performance of its subsidiaries.
  • The company has certain contingent liabilities. In case a significant portion of these liabilities materialize, these may adversely impact its financial condition and results.
  • There are certain legal and regulatory proceedings against the company’s Promoters, Dr. Vikram Jit Singh Chhatwal, Bessemer India Capital Holdings II Ltd and Medimatter Health under the provisions of the Companies Act 2013. These are currently outstanding before the National Company Law Tribunal. Any adverse ruling of these proceedings may impact the company’s business.
  • The company’s subsidiaries, namely Medi Assist TPA, Raksha TPA, and Medvantage TPA, have previously been issued show cause notices (with regards to violation of certain regulations) by IRDAI. Any failure to comply with the periodic inspections conducted by the Insurance Regulatory and Development Authority of India (IRDAI) or any unfavorable observations made by the IRDAI could have adverse implications for the business, operational outcomes, or financial status of the company.

Financials

*All values are in Rs. Cr
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Application details

Apply asPrice bandApply upto
Regular397 - 418₹2 Lakh
High Networth Individual397 - 418₹2 - 5 Lakh
For Medi Assist Healthcare Services IPO, eligible investors can apply as Regular.
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