Medi Assist Healthcare Services has filed Draft Red Herring Prospectus with capital markets regulator Securities and Exchange Board of India (Sebi) to launch an IPO (initial public supply. The public challenge will be completely an supply of sale of up to 2.8 crore equity shares of Medi Assist by promoters and current shareholders. Those promoting shares in the supply for sale incorporate Dr Vikram Jit Singh Chhatwal, Medimatter Health Management, Bessemer India Capital Holdings II Ltd, Bessemer Health Capital LLC and Investcorp Private Equity Fund I.
For monetary 2020, the Bengaluru-based Medi Assist Healthcare managed Rs 7,829.5 crore of wellness insurance coverage premiums. Medi Assist is a wellness tech and insurtech business focused on administering wellness advantages across employers, retail members and public wellness schemes. Axis Capital, Edelweiss Financial Services, IIFL Securities and SBI Capital Markets have been appointed as merchant bankers to advise the business on the IPO. Link Intime India Private Ltd is the registrar to Medi Assist Healthcare challenge.
The business has no listed providers in India that engage in a company equivalent to that of Medi Assist and its subsidiary. Under TPA (third party administrator) Medi Assist’s major customers incorporate insurance coverage providers, it also serves as an intermediary among common and wellness insurance coverage providers and the insured members (beneath retail, corporate and insurance coverage backed public wellness insurance coverage policies), insurance coverage providers and healthcare providers (such as hospitals), and the government and beneficiaries of public wellness schemes.
TPAs approach insurance coverage claims on behalf of insurance coverage providers. They contract with insurance coverage providers and make certain superior services to policyholders. The dangers, premium prices, and advertising and marketing stay with the insurer. The Indian healthcare insurance coverage marketplace is experiencing higher development. The objectives of the supply are to carry out the OFS of up to 2.8 crore equity shares by the promoting shareholders and accomplish the advantages of listing the equity shares on the stock exchanges. The business has informed that it will not acquire any proceeds from the supply and all such proceeds will go to the promoting shareholders.
Penetration of wellness insurance coverage (lives covered as percentage of total population) in India grew from 22.2 per cent in 2014-2015 to 36.5 per cent in 2019-2020 and is anticipated to attain 55 per cent by 2024-2025. According to DRHP, only 10 per cent of the total population in India is covered by wellness insurance coverage (excluding public schemes), which benefits in larger out-of-pocket expenditure for the majority of the population. Due to escalating awareness immediately after COVID-19 pandemic, it is anticipated that more men and women will probably subscribe for wellness insurance coverage, as properly as corporations possessing a larger employee wellness concentrate. Health insurance coverage penetration is anticipated to attain 16.5% in 2024-2025.