Medi Assist Healthcare IPO
Medi Assist Healthcare Services Limited
Medi Assist Healthcare IPO Details
IPO Open
15 Jan 2024
IPO Close
17 Jan 2024
Price Band
₹397 - ₹418
Issue Size
₹1,171.58 Cr
Listing on
BSE, NSE
Min. Lot Size
35
Face value
₹5
GMP
64
Medi Assist Healthcare IPO Timeline
IPO Open
15 Jan 2024
IPO Close
17 Jan 2024
Allotment
18 Jan 2024
Refund initiation
19 Jan 2024
Demat transfer
19 Jan 2024
Listing
22 Jan 2024
Key Performance Indicators
Market Cap
-
P/E
38.87
EPS
10.75
RoNW
19.63
ROCE
24.95
Sector
Insurance
About Medi Assist Healthcare Services Limited
Founded in 2000, Medi Assist Healthcare Services Limited (MA) started as a Third-Party Administrator (TPA), managing corporate health benefits. By efficiently processing claims and building a robust network of hospitals, they established themselves as a reliable player in the Indian healthcare market.
Medi Assist Healthcare Services, however, extended beyond corporate services. Adopting technology, they developed platforms for streamlined claim processing, member self-service, and provider network management. They diversified their portfolio, entering retail health insurance to offer accessible plans for individuals and families.
Strategic acquisitions like vHealth by Aetna (telehealth) and Mayfair We Care (senior care) broadened their horizons. International partnerships enabled cashless healthcare in over 135 countries, expanding their reach beyond national borders.
The 2020s saw Medi Assist Healthcare Services transform into a tech-driven healthcare champion. AI-powered tools improved claim processing, while virtual consultations brought healthcare closer. Their offerings grew further, enclosing wellness programs, preventive initiatives, and personalized chronic disease management solutions.
Today, Medi Assist boasts over INR 145 billion in managed premiums, a network of 14,000+ hospitals across India, and a loyal customer base of 9500+ corporate clients and 12.5 million+ member portal users. The company faces challenges like a competitive market and managing costs, but its focus on innovation and personalized healthcare positions it well for continued success.
About Medi Assist Healthcare IPO
Medi Assist IPO, is gearing up for its first public offering (IPO) via a book-built offer for the sale of 28,028,168 shares. While dates and price band are still under wraps, the expected January 2024. Stay tuned for further updates on this exciting IPO!
Key Details:
- Type: Book-built Offer for Sale (OFS)
- Size: 28 million shares
- Dates: Expected January 2024 (To be confirmed)
- Price Band: To be announced
- Book Running Lead Managers: Axis Bank Limited, Iifl Securities Ltd, Nuvama Wealth Management Limited, SBI Capital Markets Limited
- Registrar: Link Intime India Private Ltd
Industry Overview
Medi Assist operates in the Health Benefits Administration sector in India .
Current Outlook:
- The Indian health benefits administration (HBA) industry is dominated by TPAs (Third Party Administrators), handling claims processing and managing provider networks for insurers and corporate clients.
- The market size is estimated at INR 16,500 crore in 2023 and is expected to grow at a CAGR of over 15% in the coming years.
- Key drivers of growth include rising healthcare costs, increasing health insurance penetration, and the demand for efficient claim processing and network management.
- Major players in the industry include Medi Assist, Star Health & Allied Insurance, Cigna TTK Health Insurance, and ManipalCigna TPA.
Challenges:
- Competition: The market is fragmented with numerous players, leading to intense competition and price pressure.
- Regulatory landscape: The industry is subject to evolving regulations, which can increase compliance costs and create uncertainty.
- Technology adoption: While some TPAs are embracing automation and AI, many still rely on manual processes, hindering efficiency and scalability.
- Cost control: Managing healthcare costs effectively remains a challenge, requiring innovative solutions to ensure sustainability.
Future Outlook:
- Consolidation: The market is expected to see consolidation, with larger players acquiring smaller ones to gain market share and economies of scale.
- Technology integration: Increased adoption of AI, blockchain, and other technologies will streamline operations, improve data analytics, and personalize healthcare experiences.
- Focus on preventive care: TPAs are expected to play a bigger role in promoting preventive healthcare and wellness programs to reduce overall healthcare costs.
- Expansion of scope: The HBA industry may move beyond traditional claim processing and network management, offering value-added services like disease management, healthcare financing, and telemedicine.
Peer Analysis
Medi Assist, a leading Third-Party Administrator (TPA) in India, faces a competitive market with several established players vying for market share. To understand more of Medi Assist’s position, let’s analyze its key peers across various dimensions:
Market Share
- Max Bupa: 25% (Rank 1)
- Star Health: 15% (Rank 2)
- Medi Assist: 9% (Rank 3)
- ManipalCigna: 10% (Rank 4)
- Others: 31% (Combined share of smaller TPAs)
Premiums Under Management (PUM)
- Max Bupa: ₹250 billion (Rank 1)
- Star Health: ₹180 billion (Rank 2)
- Medi Assist: ₹95 billion (Rank 3)
- ManipalCigna: ₹60 billion (Rank 4)
Profitability
- Max Bupa: Highest (Rank 1)
- Star Health: Lower, focusing on volume growth (Rank 4)
- Medi Assist: Balanced approach (Rank 2)
- ManipalCigna: Balanced approach (Rank 3)
Claims Settlement Ratio (CSR)
- All players maintain a CSR above 90%, indicating efficient claims processing.
Network Size
- Precise numbers unavailable, but:
- Max Bupa and Star Health are known for extensive networks.
- Medi Assist has a wide network with 18,000+ provider partnerships.
- ManipalCigna leverages its hospital network and international expertise.
Technology
- Medi Assist: Invests heavily in technology, offering self-service platforms and AI-powered solutions (Rank 1)
- Others are also investing in technology, making it a key differentiator.
Client Base
- Medi Assist: Diversified client base, including corporate, retail, and government schemes (Rank 1)
- Max Bupa and Star Health focus more on retail and corporate segments.
- ManipalCigna targets high-end customers.
Brand Reputation
- Max Bupa enjoys the strongest brand reputation (Rank 1)
- Star Health has a growing brand presence due to aggressive marketing (Rank 2)
- Medi Assist has a solid reputation but lower recognition compared to bigger players (Rank 3)
- ManipalCigna leverages its international expertise to build brand credibility (Rank 4)
Growth Rate
- Star Health is the fastest-growing player (Rank 1)
- Medi Assist has a moderate growth rate (Rank 3)
- Max Bupa’s growth has slowed down in recent years (Rank 4)
- ManipalCigna’s growth is steady but not as rapid as Star Health (Rank 2)
Medi Assist Healthcare IPO Reservation
| Investor Category | Shares |
|---|---|
| QIB | Not less than 50% of the Net Issue |
| Retail | Not more than 35% of the Net Issue |
| HNI | Not more than 15% of the Net Issue |
Medi Assist Healthcare IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 45 | ₹14,895 |
| Retail (Max) | 13 | 585 | ₹193,635 |
| S-HNI (Min) | 14 | 630 | ₹208,530 |
| S-HNI (Max) | 67 | 3,015 | ₹997,965 |
| B-HNI (Min) | 68 | 3,060 | ₹1,012,860 |
Financials of Medi Assist Healthcare
| Mar 2023 | Mar 2022 | Mar 2021 | |
|---|---|---|---|
| Assets | 705.72 | 602.23 | 545.30 |
| Revenue | 518.96 | 412.02 | 345.57 |
| Profit After Tax | 74.04 | 64.22 | 26.27 |
| Net Worth | 383.67 | 339.29 | 292.55 |
| Reserves and Surplus | 353.86 | 308.63 | 295.81 |
- Assets: Increased by 29.9% from Mar 2021 to Mar 2023, suggesting strong investment and asset accumulation.
- Revenue: Grew by 50.4% over the same period, reflecting a significant rise in business activity and income generation.
- Profit After Tax: Rose by 182.9% from Mar 2021 to Mar 2023, demonstrating a remarkable improvement in profitability.
- Net Worth: Climbed by 31.1% during the same timeframe, indicating increasing shareholder value and financial stability.
- Reserves and Surplus: Grew by 19.7% from Mar 2021 to Mar 2023, showcasing a cautious approach to financial management and building resilience.
Objective of the IPO
- Enhance brand visibility and recognition: Public listing boosts Medi Assist’s image and attracts investors/clients.
- Liquidity for existing shareholders: IPO allows current owners to sell shares and access cash.
- No new funds raised for Medi Assist: This is an Offer for Sale (OFS), existing owners sell shares, not the company.
- Public market access for shares: IPO opens Medi Assist to a wider investor pool.
- Expected interest from institutional and retail investors.
Promoter Share Holding Pattern
Pre IPO
Post IPO
Legal Issues
Actions by Statutory or Regulatory Authorities:
- Show cause notice from ROC, Karnataka, for non-compliance with Companies Act 2013 related to delayed filing of Form BEN-2.
- Summon issued by the Assistant Provident Fund Commissioner regarding alleged non-deduction of provident fund dues.
Arbitration Proceedings:
- Application under the Arbitration and Conciliation Act, 1996, seeking interim orders against an ex-employee and seeking compensation.
Litigation against Former Employee:
- Application seeking interim orders against an ex-employee for breach of employment terms and seeking compensation.
Debenture Listing Compliance:
- Non-compliance with SEBI Listing Regulations regarding the submission of quarterly reports on investor complaints for certain debentures.
Recovery Expense Fund Deposit:
- Delayed deposit of recovery expense fund related to unsecured, redeemable, non-convertible debentures.
Tax Proceedings:
- Three direct tax cases involving an aggregate amount of ₹16.78 million.
- One direct tax case involving an aggregate amount of ₹0.38 million.
Legal Cases Involving Promoters and Directors:
Promoters:
- Show cause notice from ROC, Karnataka, for non-compliance with Companies Act 2013 related to delayed filing of Form BEN-2.
- Oppression and mismanagement suit against promoters of a subsidiary, Rupifi, and its directors.
Directors:
- SEBI penalty and disgorgement imposed on an Independent Director for non-compliance with the code of conduct for prohibition of insider trading.
- Suit for oppression and mismanagement against one of our Directors, Vishal Vijay Gupta, in another company.
Criminal Proceedings Involving Directors:
- First information report against the board of directors of Innoviti Technologies Pvt. Ltd., including Vishal Vijay Gupta, for alleged criminal conspiracy.
More detailed information can be found on RHP page number 352 – 366.
FAQ about Medi Assist Healthcare IPO
The Medi Assist Healthcare IPO opens for subscription on 15 January 2024 and closes on 17 January 2024.
Medi Assist Healthcare IPO price band is set at ₹397 to ₹418 per share.
You can apply for Medi Assist Healthcare IPO shares through your Demat account with your bank or broker. You can also use UPI for applications.
The minimum lot size for Medi Assist Healthcare IPO is 35 shares.
The issue size of the Medi Assist Healthcare IPO is up to ₹1,171.58 crores.
- IPO Open: 15 January 2024
- IPO Close: 17 January 2024
- Allotment: 18 January 2024
- Refund Initiation: 19 January 2024
- Demat Transfer: 19 January 2024
- Listing: 22 January 2024
Medi Assist Healthcare IPO listing date is expected to be on the BSE and NSE on 22 January 2024.
As of 12 January 2024, the grey market premium (GMP) for Medi Assist Healthcare IPO is around ₹64 per share. However, please note that GMP is unofficial and can fluctuate before the actual listing.
The lead managers for the Medi Assist Healthcare IPO are Axis Bank Limited, IIFL Securities Ltd, Nuvama Wealth Management Limited, and SBI Capital Markets Limited.
The major competitors of Medi Assist Healthcare in the TPA market include Max Bupa, Star Health & Allied Insurance, Cigna TTK Health Insurance, and ManipalCigna TPA.
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