Medi Assist Healthcare Services
Mainboard₹1,172 Cr issue
+11.24%
Listing gain over issue price
Issue size
₹1,172 Cr
1 lot at cut-off
₹14,630
Lot size
35shares
Open
15 Jan 2024
Close
17 Jan 2024
Allotment
18 Jan 2024
Listing
23 Jan 2024
Listing performance
Issue price
₹418
Listed at
₹465
Listing-day close
₹464.25
Latest price
₹284.15
Close on 23 Oct 2026
Listing gain
+11.24%
Return since issue
-32.02%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 15 Jan 2024 – 17 Jan 2024
- Listing date
- 23 Jan 2024
- Face value
- ₹5 per share
- Issue price
- ₹418 per share
- Lot size
- 35 shares
- Total issue size
- ₹1,172 Cr
- Market cap at offer price
- ₹2,878 Cr
- Promoter holding
- 71.06% → 39.67% pre-issue → post-issue
- ISIN
- INE456Z01021
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Axis Bank Ltd.
- Registered office
- Tower D, 4th floor, IBC Knowledge Park, 4/1 Bannerghatta Road, Karnataka
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 84,08,449 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 35 shares per lot, in multiples, at ₹418
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 35 | ₹14,630 |
| Retail (max) | 13 | 455 | ₹1,90,190 |
| S-HNI (min) | 14 | 490 | ₹2,04,820 |
| S-HNI (max) | 68 | 2,380 | ₹9,94,840 |
| B-HNI (min) | 69 | 2,415 | ₹10,09,470 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
84,08,449
Anchor portion
₹351 Cr
at ₹418 per share
Valuation and performance
Valuation at offer price
₹418 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 10.94 | 13.15 |
| P/E (×) | 38.21 | 31.79 |
| Price to book (×) | 0.00 | — |
| Market cap | — | ₹2,878 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 19.63%
- ROCE
- 24.95%
- PAT margin
- 14.51%
- NAV per share
- ₹55.72
- Price to book
- 0.00
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Medi Assist Healthcare Services
Medi Assist Healthcare Services Limited, incorporated on June 7, 2000 (originally as Net Logistics Private Limited, renamed to Medi Assist Healthcare Services Limited in 2018), operates as a holding company for nine subsidiaries that provide third party administration services to insurance companies. The company processes health insurance claims for insurance companies and provides policy administration, customer service, network management, and healthcare-related services. It acts as a facilitator between insurance companies, policyholders, and healthcare providers, as well as between the Government and beneficiaries of public health schemes. The company operates a pan-India healthcare provider network comprising 18,754 hospitals across 1,069 cities and towns and 31 states (including union territories) in India, with an international network spanning 141 countries. For Financial Year 2023, Medi Assist TPA and Medvantage TPA contributed 96.32% of the company's revenue from contracts with customers, totaling ₹5,189.55 million.
Company Analysis
from RHPMedi Assist Healthcare Services Limited is a third party administrator (TPA) providing health insurance claims processing and related healthcare administration services to insurance companies operating in India and internationally.
Medi Assist Healthcare Services Limited, incorporated on June 7, 2000 (originally as Net Logistics Private Limited, renamed to Medi Assist Healthcare Services Limited in 2018), operates as a holding company for nine subsidiaries that provide third party administration services to insurance companies. The company processes health insurance claims for insurance companies and provides policy administration, customer service, network management, and healthcare-related services. It acts as a facilitator between insurance companies, policyholders, and healthcare providers, as well as between the Government and beneficiaries of public health schemes. The company operates a pan-India healthcare provider network comprising 18,754 hospitals across 1,069 cities and towns and 31 states (including union territories) in India, with an international network spanning 141 countries. For Financial Year 2023, Medi Assist TPA and Medvantage TPA contributed 96.32% of the company's revenue from contracts with customers, totaling ₹5,189.55 million.
health insurancethird party administrationhealthcare services
Objects of the Issue
- Offer for Sale of equity shares by selling shareholders p.24
- General corporate purposes null p.77
- Listing of Equity Shares on Stock Exchanges p.111
- Offer for Sale by Selling Shareholders 28,028,168 Equity Shares aggregating up to ₹ [●] million p.94
Issue Structure
- Total Issue
- Up to 28,028,168 Equity Shares of face value of ₹ 5 each aggregating to ₹ [●] million
- Fresh Issue
- Nil (100% Offer for Sale)
- Offer for Sale
- Up to 28,028,168 Equity Shares aggregating to ₹ [●] million
- Price Band
- Price band ranging from a Floor Price of ₹ [●] per Equity Share to a Cap Price of ₹ [●] per Equity Share (to be finalized in consultation with BRLMs)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹ 5 each
Business Model
The company generates revenue primarily from fees charged as a percentage of premiums under management administered through its subsidiaries Medi Assist Insurance TPA Private Limited, Medvantage Insurance TPA Private Limited, and Raksha Health Insurance TPA Private Limited. Income is largely generated as a percentage of premiums under management (total premiums administered during the period/year). The company also provides healthcare and ancillary services including hospitalization services, call centre services, customer relations and contract management services, billing services and claims processing services.
Business Segments
Processes health insurance claims and provides policy administration, customer service and network management services to insurance companies
Facilitates hospitalization services, call centre services, customer relations and contract management services, billing services and claims processing services
Operates a pan-India healthcare provider network and global network across 141 countries
Third-party administration services for health insurance claims processing and benefits administration. As of September 30, 2023, serviced 26 insurance companies managing ₹153.6 billion in premiums, processed 5,960 thousand claims valued at ₹149 billion, with 28.08% market share by TPA service revenue in FY 2022 and 26.87% in FY 2021.
Third-party administration services acquired in February 2023. Contributed ₹24.93 million to revenue in FY 2023 and ₹29.63 million in the six months ended September 30, 2023. Processes claims and manages benefits administration for insurance companies.
Third-party administration services acquired in August 2023. Contributed ₹64.34 million to revenue in the six months ended September 30, 2023. Processes claims and manages benefits administration for insurance companies.
Processing and administration of retail health insurance claims where individuals purchase health insurance plans to cover themselves and/or family members. Medi Assist services retail policies through TPA operations.
Processing and administration of group health benefit policies provided by employers to employees and their dependents. This is the primary segment for Medi Assist's TPA operations.
Servicing of government health insurance schemes such as PM-JAY and state government schemes where Medi Assist acts as TPA between government and beneficiaries.
Through subsidiary Mayfair We Care, servicing overseas medical policies for Indian insurers and beneficiaries traveling or residing abroad.
Services health insurance requirements of employees of corporates through administration of employee insurance benefits, claims processing, and healthcare provider network access.
Services individual insurance policyholders and acts as intermediary between insurance companies, hospitals and insured members.
Administers public healthcare programs with Central Government, State Governments and government agencies, including beneficiary enrolment, identification card distribution, and periodic management information system reports.
Through Mayfair UK (acquired November 2022), provides global administration services focused on health, wellness and related assistance services across 140 countries.
Manages requirements of policyholders for insurance companies and operates networks with healthcare providers to enable cashless treatment at pre-negotiated tariffs
Provides health management services, consultancy services, contact centre support and other allied services pertaining to the healthcare and health insurance sector
Provides policy administration services rendered to Governments to enable public health schemes
Processes health insurance claims for insurance companies, provides policy administration, customer service, network management services to 27 of the 29 general insurance companies, 4 of the 24 life insurance companies and 4 overseas insurance companies
Facilitates 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)
Manages health insurance claims, processes policies, and services group corporate accounts and government-sponsored insurance schemes
Provides wellness platforms, health management services, and claims management software on a SaaS model to insurance companies and customers
Services government-sponsored health insurance schemes including major government projects
SWOT Analysis
Strengths
- • Market-leading position in TPA services with 33.67% market share in retail and group premiums serviced(p.156)
- • Strong financial performance with significantly above-average margins and profitability(p.152)
- • Well-established presence across major hospital networks and insurers(p.156)
- • Dominant position in group health insurance market with 41.71% market share(p.154)
- • Scalable technology-enabled infrastructure and diversified service offerings(p.114)
- • Market-leading position as third-party administrator in India's group health insurance segment(p.171)
- • Pan-India healthcare provider network enabling cost control and negotiating power(p.172)
- • Scalable technology infrastructure processing high claim volumes with lower manual intervention(p.168)
- • Longstanding relationships with majority of insurance companies and diversified corporate client base(p.171)
- • Cost leadership through technology-enabled operations improving efficiency metrics(p.168)
- • Demonstrated M&A integration capability with successful track record of acquisitions(p.166)
- • Experienced management team with deep industry expertise and tenure(p.173)
- • Superior claims processing turnaround times and low grievance rates(p.180)
- • Established board with healthcare and finance expertise(p.209)
- • Experienced CEO with technology and healthcare operations background(p.209)
- • Multiple qualified independent directors with relevant sector experience(p.209)
- • Formal dividend distribution policy in place(p.230)
- • History of dividend payments to shareholders(p.230)
- • Market-leading TPA position with diverse insurance company relationships(p.318)
- • Extensive pan-India healthcare provider network enabling cost control(p.317)
- • Superior medical cost control through negotiated provider contracts(p.319)
- • Technology-enabled operational efficiency and scale(p.319)
- • Recent strategic acquisitions expanding service capabilities and customer base(p.317)
- • Strong revenue growth and market position in TPA services(p.341)
- • Significant growth in premium under management and customer retention(p.341)
- • Diversified revenue streams including government-sponsored schemes(p.341)
- • Strong profitability and operational efficiency(p.342)
- • Low financial leverage and debt burden(p.346)
Weaknesses
- • Significant client concentration(p.34)
- • Audit report qualifications from previous and current auditors(p.34)
- • High dependence on subsidiary TPA revenue(p.34)
- • High employee attrition rates(p.40)
- • Past regulatory compliance failures and show cause notices(p.42)
- • Outstanding litigation against promoters(p.41)
- • Restrictive covenants on subsidiary financing(p.27)
- • Concentration risk with major customers – top hospital chains and insurers represent significant portions of revenue(p.156)
- • Dependence on few customer relationships – single insurers represent up to 16.19% of premium processed(p.157)
- • High revenue concentration from government business lacking long-term stability(p.176)
- • Dependence on limited number of large insurance company clients(p.175)
- • Retail portfolio showing declining revenue share despite growth in premiums(p.165)
- • Early-stage integration challenges from recent acquisitions (Medvantage, Raksha, Mayfair UK)(p.163)
- • Ongoing trademark registration objection limiting brand protection(p.182)
- • Concentration risk with individual promoter holding significant stake(p.225)
- • Related party transactions with group companies(p.212)
- • Recent acquisitions requiring integration(p.245)
- • Auditor identified other matters regarding unaudited subsidiary financials(p.235)
- • Significant goodwill and intangible assets on balance sheet(p.239)
- • High dependence on limited number of insurance company customers(p.318)
- • Exposure to cybersecurity risks and IT infrastructure vulnerabilities(p.319)
- • Operational integration challenges from recent acquisitions(p.317)
- • High customer concentration risk(p.351)
- • Significant contingent liabilities related to tax disputes(p.347)
- • Litigation with former employee restraining shareholding changes(p.357)
- • Working capital challenges evident in cash flow(p.345)
Opportunities
- • Rapidly growing health insurance market expected to reach ₹2,466 billion by FY 2028 with CAGR of 22.48%(p.149)
- • Expansion potential in retail health insurance segment with expected CAGR of 20.71% from FY 2022-28(p.149)
- • High penetration potential in underserved group health insurance market with CAGR of 29.19%(p.149)
- • Government-backed insurance expansion and regulatory sandbox initiatives creating new market opportunities(p.142)
- • Growing potential in international private medical insurance segment servicing overseas Indian expatriates(p.141)
- • Consolidation trend in fragmented TPA industry enabling scale and cross-platform growth(p.157)
- • Growing health insurance penetration driven by COVID-19 awareness and economic development(p.167)
- • Expansion in retail segment with modular SaaS offerings for insurance companies(p.174)
- • International expansion through Mayfair UK managing healthcare benefits across 140 countries(p.182)
- • Consolidation opportunity as TPA industry consolidates with technology and scale becoming key differentiators(p.159)
- • IRDAI's 'Insurance for All by 2047' initiative driving increased health insurance penetration and demand for TPA services(p.161)
- • Platformization of Indian TPA ecosystem enabling services expansion beyond claims processing(p.161)
- • Global health insurance market growth creating opportunities for international operations(p.160)
- • Provision for acquisition-related ESOP settlement(p.223)
- • Multiple board committees for governance and oversight(p.214)
- • Established subsidiaries with healthcare operations(p.245)
- • High growth in private health insurance driven by economic expansion(p.317)
- • Rising consumer demand for health insurance due to high out-of-pocket expenditure(p.318)
- • Expansion of retail health insurance segment(p.318)
- • Growth in OPD claims from sustained telemedicine and digital health adoption(p.318)
- • International expansion through Mayfair UK and overseas operations(p.317)
- • Expansion through acquisitions of complementary TPA businesses(p.341)
- • Growth in health management services and software-as-a-service offerings(p.341)
- • Expansion of government-sponsored insurance scheme coverage(p.341)
- • Business growth driven by increase in group accounts portfolio(p.341)
Threats
- • Group account concentration in IT/ITES and BFSI sectors(p.27)
- • Dependency on premium under management levels(p.41)
- • Fee rates set by insurance companies(p.41)
- • Regulatory changes and oversight on expense management limiting TPA profitability(p.142)
- • High medical inflation (10-14%) pressuring healthcare costs and reducing claim volume economics(p.141)
- • Intense competition from consolidating competitors with overlapping capabilities(p.150)
- • Government schemes reducing overall market potential by covering economically vulnerable population(p.149)
- • Regulatory changes affecting TPA operations and fee structures under IRDAI(p.184)
- • Intense competition from other TPAs and in-house processing by insurance companies(p.182)
- • Medical inflation outpacing company's cashless claims payout inflation(p.172)
- • Dependence on insurance company discretion for contract renewals and scope of services(p.176)
- • Cyber security and data privacy risks from handling sensitive healthcare and financial information(p.159)
- • Policy rejection authority concentrated with insurers limiting TPA's control over claims outcomes(p.186)
- • Government scheme policy changes and fund availability affecting revenue and margins(p.176)
- • Dependence on insurance industry contracts(p.245)
- • Foreign exchange exposure from international subsidiaries(p.245)
- • Regulatory scrutiny of insurance TPA operations(p.245)
- • Unilateral contract termination rights of insurance company clients(p.318)
- • Potential for IT infrastructure breakdowns and service disruptions(p.319)
- • Medical cost inflation pressuring margins and fee negotiations(p.318)
- • Aging demographics increasing claims frequency and costs(p.318)
- • Regulatory compliance risks related to healthcare and insurance operations(p.363)
- • Multiple pending litigation involving fraudulent insurance claims by healthcare providers(p.359)
- • Dependence on insurance industry cyclicality and external economic factors(p.351)
- • Potential default risk from insurance company counterparties(p.348)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Dr. Vikram Jit Singh Chhatwal | Promoter | 3.69% | — |
| Medimatter Health Management Private Limited | Promoter | 27.94% | — |
| Bessemer India Capital Holdings II Ltd. | Promoter | 35.92% | — |
| Dr. Vikram Jit Singh Chhatwal | Promoter | 3.69% | null |
| Medimatter Health | Promoter | 27.94% | 9.83% |
| Bessemer Health | Promoter Group | 9.59% | null |
| Investcorp Private Equity Fund I | Promoter Group | 21.65% | 12.54% |
| Dr. Vikram Jit Singh Chhatwal | Promoter | 3.69% | Nil |
| Medimatter Health | Promoter | 27.94% | 9.83% |
| Bessemer India Capital Holdings II Ltd. | Promoter | 35.92% | 35.92% |
| Medimatter Health | Promoter | — | — |
| Dr. Vikram Jit Singh Chhatwal | Promoter | — | — |
| Bessemer Health | Promoter Group | — | — |
| Investcorp Private Equity Fund I | Promoter Group | — | — |
| Dr. Vikram Jit Singh Chhatwal | Promoter | — | — |
| Medimatter Health | Corporate Promoter | 27.94% | — |
| Bessemer India Capital Holdings II Ltd. | Corporate Promoter | 35.92% | — |
| Medimatter Health Management Private Limited | Entity having significant influence | — | — |
| Medimatter Health | Corporate Promoter | — | — |
| Bessemer Health | Corporate Promoter | — | — |
| Investcorp Private Equity Fund I | Corporate Promoter | — | — |
| Dr. Vikram Jit Singh Chhatwal | Promoter | — | — |
Leadership
Dr. Vikram Jit Singh Chhatwal · Chairman and Whole-Time Director / Individual Promoter
Satish V.N. Gidugu · Chief Executive Officer
Mathew George · Chief Financial Officer
Simmi Singh Bisht · Chief Compliance Officer and Company Secretary
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Medi Assist Healthcare Services IPO FAQs
What is the lot size of Medi Assist Healthcare Services IPO?
The minimum lot size of Medi Assist Healthcare Services IPO is 35 shares. One lot costs ₹14,630 at the cut-off price.
When does Medi Assist Healthcare Services IPO open and close?
Medi Assist Healthcare Services IPO opened for subscription on 15 Jan 2024 and closed on 17 Jan 2024.
What is the listing date of Medi Assist Healthcare Services IPO?
Medi Assist Healthcare Services IPO listed on 23 Jan 2024.