Medi Assist Healthcare Services Limited IPO

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Medi Assist Healthcare Services Limited operates as a holding company in the healthcare sector, focusing on third-party administration (TPA) services for insurance companies. The business structure includes the parent company and nine subsidiaries, of which four are direct and five are indirect.

Core Business Activities

Third-Party Administration Services

  • Subsidiaries Involved: Medi Assist TPA, Medvantage TPA, and Raksha TPA.
  • Services Offered: Health insurance claim processing, policy administration, customer service, and network management.
  • Market Position: Medi Assist TPA held a significant market share in both retail and group health insurance markets as of Financial Year 2022.

Revenue Contributions

  • Fiscal Year 2023: Medi Assist TPA and Medvantage TPA accounted for 96.32% of the revenue.
  • Six Months Ending September 30, 2023: Medi Assist TPA, Medvantage TPA, and Raksha TPA contributed 92.98% of revenue.

Growth and Scale

  • Health Insurance Premiums Management: Managed ₹145,746.49 million in health insurance premiums (group and retail) by the end of FY 2023.
  • Annual Growth Rate: Achieved a CAGR of 35.67% from FY 2021 to FY 2023.
  • Insurance Partnerships: Collaborated with 35 insurance companies in India and globally as of September 30, 2023.

Healthcare and Ancillary Services

  • Service Range: Hospitalization, call center services, customer relations, contract management, billing, and claims processing.
  • Subsidiaries Involved: IHMS, Mayfair India, Mayfair UK, Mayfair Group Holding, Mayfair Philippines, and Mayfair Singapore.

Network Expansion

  • Domestic Reach: Network includes 18,754 hospitals across 1,069 cities and towns in India.
  • Global Presence: Expanded network across 141 countries globally.

Business Strategy and Prospects

Medi Assist Healthcare Services Limited is positioned to capitalize on the growing demand for efficient healthcare services and insurance claim processing. The company’s extensive network and collaborations with numerous insurance companies underscore its prominent role in the healthcare services sector. The significant revenue contributions from its subsidiaries and its CAGR indicate a robust growth trajectory. This growth is further supported by the company’s diversification into various healthcare and ancillary services, catering to a wide range of needs in the healthcare sector both domestically and internationally.

Objects of the Medi Assist Healthcare Services Limited IPO:

The object of the Offer is to achieve the benefits of listing the Equity Shares on the Stock Exchanges. The company expects that listing the Equity Shares will enhance its visibility and brand and provide liquidity to its existing Shareholders. The listing will also provide a public market for the Equity Shares in India. The company will not receive any proceeds from the Offer. All proceeds from the Offer will go to the Selling Shareholders, in proportion to the Equity Shares offered by them in the Offer for Sale.

Medi Assist Healthcare Services Limited IPO Details:

Open Date: Jan 15 2024
Close Date: Jan 17 2024
Total Shares: 28,028,168
Face Value: ₹ 5 Per Equity Share
Issue Size: 1,171.58 Cr.
Lot Size: 35 Shares
Issue Price: ₹ 397 - 418 Per Equity Share
Listing At: NSE,BSE
Listing Date: Jan 22 2024

Promoters And Management:

Dr. Vikram Jit Singh Chhatwal is the Chairman and Whole-time Director of the Company. He holds a bachelors’ degree in medicine and surgery from Jawaharlal Nehru Medical College, Belgaum, degree of Doctor of Philosophy from the National University of Singapore, masters’ degree in business administration in international management from Ecole Nationale des Ponts et Chaussées, Paris and a post-graduate diploma in public health administration from the Institute of Health Care Administration, Chennai. He was previously associated with Apollo Health Street, Indraprastha Apollo Hospitals, Reliance Capital Limited, Advent India PE Advisors Private Limited and was a member of the NUS President’s Advancement Advisory Council. He joined our Company in 2007 as an additional director. Satish V.N. Gidugu is the Whole-time Director and Chief Executive Officer of the Company. He joined the Company on October 7, 2013 as Chief Technology Officer and was re-designated as Chief Operating Officer of the Company on January 12, 2015. He holds a bachelors’ degree in technology (naval architecture) from the Indian Institute of Technology, Madras. He was previously associated with redBus (a part of MakeMyTrip Limited), SAP Labs India Private Limited and Intergraph Consulting Private Limited. Vishal Vijay Gupta is a Non-Executive Nominee Director on the Board nominated by Bessemer India Capital Holdings II Ltd. and Bessemer Health. He holds a post graduate diploma in management from the Indian Institute of Management, Calcutta and is also an associate member of the Institute of Chartered Accountants of India. He is currently the Managing Director of BVP India Investors Private Limited, an affiliate of Bessemer Venture Partners and was previously associated with DSL Software Limited.

Financials of Medi Assist Healthcare Services Limited IPO:

A. Balance Sheet
Particular (In Million) Mar-21 Mar-22 Mar-23
Equity Share Capital 0.37 344.30 344.30
Reserves 2,904 3,027 3,422
Borrowings 0 0 1
Trade Payables 340 290 364
Other Liabilities 2,209 2,361 2,926
Total Liabilities 2,549 2,651 3,291
Net Block 291 212 274
Investments 75 69 13
Other Assets 1,389 1,492 2,349
Total NC Assets 1,755 1,774 2,636
Receivables 1,163 1,188 1,272
Cash & Bank 1,147 625 2,115
Other Assets 1,375 2,435 1,035
Face value 5 5 5
B. Profit & Loss Statement
Particular (In Million) Mar-21 Mar-22 Mar-23
Sales 3,227 3,938 5,049
Employee Cost 1,433 1,557 1,977
Other Expenses 1,039 1,469 1,879
Other Income 228 182 140
Depreciation 317 284 268
EBITDA 984 1,094 1,334
EBITDA Margin 30.50% 27.79% 26.41%
Interest 57 30 30
Profit before tax 610 807 1,036
Tax 230 172 283
Net profit 380 635 753
NPM (%) 11.00% 15.40% 14.51%
C. Cash Flow Statement
Particular (In Million) Mar-21 Mar-22 Mar-23
Cash From Operating Activity
Profit From Operation 786 1,014 1,253
Receivable 82 0.4 37
Payable -28 -33 -54
Other WC Items 197 90 -57
Working Capital Changes 250 57 -74
Direct Taxes 316 -427 -391
Net Cash Inflow from Operating Activity 1,352 645 787
Cash from Investing Activity
Fixed assets purchased -120 -60 -277
Fixed assets sold 0 90 0
Investments purchased -735 -855 -1,107
Investment sold 188 25 1,540
Acquisition of companies 0 0 -276
Other investing items 111 -29 36
Net cash inflow from investing activities -556 -829 -82
Cash from Financing Activity
Repayment of borrowings 0 0 -43
Intrest paid fin -15 -2 -1
Dividends paid 0 -172 -130
Financial liabilities -90 -130 -140
Other financing items -2 0 0
Net Cash Flow 688 -488 391

Comparison With Peers:

Notes: - There are no listed companies in India that are engaged in a business similar to this Company.

Recommendation on Medi Assist Healthcare Services Limited IPO:

Lead Manager of Medi Assist Healthcare Services Limited IPO:

  1. Axis Bank Limited
  2. IIFL Securities Ltd
  3. Nuvama Wealth Management Limited
  4. SBI Capital Markets Limited

Registrar of Medi Assist Healthcare Services Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Medi Assist Healthcare Services Limited Tower D, 4th floor, IBC Knowledge Park 4/1 Bannerghatta Road Bengaluru 560 029 Phone: (+91 80) 6919 0000 Email: Website

Discussion on Medi Assist Healthcare Services Limited IPO:

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