Medi Assist Healthcare IPO
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Get everything about Medi Assist Healthcare IPO here!
Overview of Medi Assist Healthcare IPO
IPO Date
15-Jan-2024 to 17-Jan-2024
Face Value
₹5 per share
Price Band
₹397 to ₹418
Lot Size
35 Share
Issue Size
28,028,168 shares shares (aggregating up to ₹1,171.58 Cr)
Listing At
BSE,NSE
Basis of Allotment
18-Jan-2024
Initiation of Refunds
19-Jan-2024
Credit of Shares to Demat
19-Jan-2024
Listing Date
22-Jan-2024
Cut off time for UPI Mandate
17-Jan-2024
Objective of Medi Assist Healthcare IPO
The object of the offer is to achieve the benefits of listing the equity shares on the stock exchanges. The company expects the listing on stock exchanges to enhance its visibility and brand. It would also provide liquidity to its existing shareholders. The proceeds from the offer will go to the selling shareholders in proportion to the equity share they offer.
About Medi Assist Healthcare IPO
Medi Assist Healthcare is a provider of third-party administration services to insurance companies. As a third-party administrator (TPA), they help health insurance companies process health insurance claims along with providing services such as policy administration, customer services, and network management. They act as a facilitator between (a) insurance companies and their policyholders, (b) insurance companies and healthcare providers, and (c) the Government and beneficiaries of public health schemes. The company has a pan-India healthcare provider network comprising 18,754 hospitals across 1069 cities. As of September 2023, they work with 35 insurance companies in India and globally.
Medi Assist Healthcare IPO Financials
Particulars (in Cr) | H1 FY24 | FY23 | FY22 | FY22 |
---|---|---|---|---|
Total Revenue Annual | 302 | 505 | 394 | 323 |
Operating Expenses Annual | 240 | 386 | 303 | 247 |
Operating Profit Annual | 62 | 119 | 91 | 76 |
Depreciation | 20 | 27 | 28 | 32 |
Interest Annual | 1 | 3 | 3 | 6 |
Tax Annual | 6 | 28 | 17 | 23 |
Net Profit Annual | 22 | 74 | 64 | 26 |
Total Share Holder Funds | 417 | 384 | 339 | 292 |
Fixed Asset Annual | 29 | 27 | 21 | 29 |
Total Non Current Asset | 409 | 264 | 177 | 176 |
Total Current Asset | 394 | 442 | 425 | 370 |
Book Value Per Share | 61 | 56 | 49 | 42 |
ROE | 6% | 20% | 19% | 13% |
ROCE | 11% | 25% | 22% | 20% |
Total Debt To Total Equity | 0 | 0 | 0 | 0 |
EBIDTA | 21% | 24% | 23% | 23% |
Cash From Operating | -19 | 79 | 64 | 135 |
Cash From Investing | 16 | -8 | -83 | -56 |
Cash From Finance | -31 | -31 | -30 | -11 |
Net Cash Flow | -34 | 39 | -49 | 69 |
Promoter's Holding
Total Share Capital
₹68,859,212
Offered to Public
>35% of the Net Issue
Promoter’s Holding(Pre-Issue)
67.55%
Promoter’s Holding(Post-Issue)
45.75%
• Medi Assist is a market leader in the TPA industry in India. Medi Assist, along with its subsidiaries Raksha and Medvantage combined, have a market share of ~38% in terms of the premium serviced by TPAs
• The company has a pan-India healthcare provider network comprising 18,754 hospitals across 1069 cities and towns. The company works with 35 insurance companies in India and globally.
• The company provides its services to 78% of the Nifty 50 companies and 35% of the BSE 500 companies. They also have retained ~95% of the client as of Sept’23.
• The company has demonstrated its ability to consolidate its position in the health insurance industry through inorganic growth.
The following points should be kept in mind:
• The top five clients bring in ~73% of the revenues. While it has come down from 89% in FY21. But it remains a sizeable chunk.
• The health insurance policy gets renewed every year, and the retention of policyholders depends on the turnaround time in claims processing, responsiveness, accuracy, and effective grievance redressal. So, any deviation in the quality of the service can affect the business substantially.
• The future growth of the business is directly related to the industry growth and Medi Assist’s market share. If, at the industry level, the growth in premium stagnates or declines, it can considerably affect the revenues of the business. Currently, there are 17 TPAs operating in India. If the competition increases further, it can impact the market share of Medi Assist.
Medi Assist TPA had a market share of 14.83 percent of the retail and 41.71 percent of the group health insurance market. It managed Rs 14,574.65 crore of health insurance premiums (group and retail) as of FY23, which grew at a CAGR of 35.67 percent from Rs 7,918.5 crore as of FY21.
The revenue made by Medi Assist as of 31st March 2023 is $64.7M.
Chhatwal owns a 3.69% stake in the company, while Medimatter and Bessemer hold 27.94% and 35.92% stakes, respectively. Investcorp Private Equity Fund is the single largest non-promoter shareholder in Medi Assist with a 21.65% stake.
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