Medi Assist Healthcare Ltd IPO : SUBSCRIBE

  • Date

    15th Jan, 2024 - 17th Jan, 2024

  • Price Range

    Rs. 397 to Rs. 418

  • Minimum Order Quantity

    35

Company Overview

Medi Assist is a Bengaluru-based health-tech and insure-tech company that administers health benefits to employers, retail members and public health schemes. The company provides third-party   administration services to insurance companies through its wholly-owned subsidiaries, Medi Assist TPA, Advantage TPA and Raksha TPA. A third-party administrator is an organization that processes health insurance claims for insurance companies and provides services such as policy administration, customer service and network management. As a third-party administrator, the company acts as a facilitator between Insurance companies and their policyholders, Insurance companies and healthcare providers (such as hospitals) and the Government and beneficiaries of public health schemes. The company also facilitate other healthcare and ancillary services such as hospitalization services, call centre services, customer relations and contract management services, billing services and claims processing services through the company and other Subsidiaries, IHMS, Mayfair India, Mayfair UK, Mayfair Group Holding, Mayfair Philippines and Mayfair Singapore. The company has developed a pan-India healthcare provider network which comprises 18,754 hospitals across 1,069 cities and towns and 31 states (including union territories) in India and a network across 141 countries globally as of September 30, 2023.

Objects of the issue:

The net proceeds from the fresh issue will be used towards the following purposes:

  • Achieve the benefits of listing the Equity Shares on the Stock Exchange;
  • Offer for sale – Rs. 1171.58 crores;
  • General corporate purposes. 

Investment Rationale:

Well-established Third-Party Administrator in India

Medi Assist provides third-party administration services to insurance companies through its wholly-owned subsidiaries, Medi Assist TPA, Advantage TPA and Raksha TPA. The company believes that a market-leading position as a third-party administrator in India enhances the ability to benefit from the prospects of the health insurance industry, enhances profitability and strengthens value proposition due to increasing economies of scale, ability to invest in cutting-edge technology and better scale for negotiating with healthcare provider networks. The COVID-19 pandemic has brought about a fundamental and lasting shift in behaviour across both the retail and group segments. This shift has significantly driven substantial growth for several TPAs, including Medi Assist over the past three Financial Years, despite the economic downturn caused by the pandemic in 2021. During FY23, retail and group premiums increased by 31.91% compared to the previous year, partly due to the heightened awareness of the need for adequate health insurance brought on by the pandemic. This trend continues to support growth in the overall sector. With the company’s leading market position, technology-enabled ecosystem, longstanding relationships with insurers, hospitals and corporates and pan-India presence, Medi Assist is well-positioned to take advantage of this growth.

Longstanding Relationships with a Majority of Insurance Companies

Medi Assist interacts with many participants in the health insurance ecosystem and generates revenues predominantly from health and other general insurance companies. Over the years, the company leveraged the domain expertise of the Indian health insurance ecosystem to establish trust and strengthen longstanding relationships with these insurance companies. Insurance companies benefit from a diverse range of services and the ability to manage many products and services. The company has developed a longstanding client base of insurance companies where their clients trust and rely on its services, technology infrastructure and expertise built over several years of experience for day-to-day aspects of their businesses. The average relationship term with the four PSU insurance companies was 20 years, and with 23 non-PSU sector insurance companies, it was nine years as of September 30, 2023. The company share of retail and group benefits administration premiums under management from non-PSU insurance companies has increased from 14.65% in FY21 to 21.3% in FY23 and 24.3% during the six months ended September 30, 2023

Valuation and Outlook:

Medi Assist interacts with many participants in the health insurance ecosystem and generates revenues predominantly from health and other general insurance companies. Over the years, the company leveraged the domain expertise of the Indian health insurance ecosystem to establish trust and strengthen longstanding relationships with these insurance companies. Insurance companies benefit from a diverse range of services and the ability to manage many products and services. The company has developed a longstanding client base of insurance companies where their clients trust and rely on its services, technology infrastructure and expertise built over several years of experience for day-to-day aspects of their businesses. The average relationship term with the four PSU insurance companies was 20 years, and with 23 non-PSU sector insurance companies, it was nine years as of September 30, 2023. The company share of retail and group benefits administration premiums under management from non-PSU insurance companies has increased from 14.65% in FY21 to 21.3% in FY23 and 24.3% during the six months ended September 30, 2023