The Medi Assist Healthcare Services Limited IPO is an offer to sell 28,028,168 equity shares for an unknown sum. In terms of income and premiums handled by health insurance carriers, the firm is the largest health benefits administrator.
The company is a TPA that acts as a middleman between health insurance carriers and clients, assisting insurance vendors with claim processing and settlement.
Through a custom-built, integrated platform, the technology-driven TPA primarily serves health insurance firms. The company handled Rs 78,295 in premium under administration in FY2020.
Medi Assist Healthcare Services Limited IPO Objective
- The company will receive listing benefits through the IPO.
Why should you invest in the Medi Assist Healthcare Services IPO?
- In terms of premiums received, they were the most notable health benefits administrator in the country in 2018, 2019, and 2020.
- They control 17% of the private health insurance market and 29% of the private health insurance market that health benefits administrators service.
- The Indian healthcare industry will reach USD 432 billion by 2025, growing at a CAGR of 30.5%.
- With strong penetration in the retail and group health insurance segments, the Indian health insurance industry’s aggregate penetration is predicted to reach 55.0% in 2024–2025.
Medi Assist Healthcare Services IPO Financials
| Particulars | FY21 | FY20 | FY19 |
|---|---|---|---|
| Revenue From Operation | 3,185.85 | 2,768.19 | 2,317.57 |
| EBITDA | 935.56 | 755.13 | 860.64 |
| EBITDA Margin (%) | 28.32 | 26.86 | 35.63 |
| Profit After Tax | 391.71 | 329.74 | 438.77 |
| EPS | 5.13 | 3.89 | 6.00 |
| ROE |
Know before investing
Strengths
- As premium income is expected to hit Rs 1304 billion by FY25, recording 21% growth in five years, the company is poised to harness the force in the industry.
- They were the largest TPA in India for consecutive three years in 2018, 2019, and 2020 in revenue and premium services.
- Technology plays a vital role, and the company provides a scalable, purpose-built, modern technology platform.
- The company uses technology to gain a cost advantage.
Risks
- Medi Assist functions in the highly regulated insurance segment, and government policies will remain a factor determining future cash flow.
- The company’s ability to remain competitive depends on continuously expanding healthcare providers’ networks.
- Since they are technology-dependent, any system failure or data security breach will be critical for the brand’s image.
- The premium under management may decline in the future, adversely affecting the company’s profitability.
Medi Assist Healthcare Services Peer Comparison
| Name | 2017-18 | 2018-19 | 2019-20 |
|---|---|---|---|
| Medi Assist Healthcare Services Limited | 2415.8 | 2811.7 | 3304.1 |
| MDIndia Health Insurance TPA Private Limited | 1819.0 | 2210.4 | 2409.9 |
| Family Health Plan Insurance TPA Limited | 1,113.0 | 1,278.1 | 1,424.5 |
| Health India Insurance TPA Services Private Limited | 867.9 | 1233.4 | 1276.9 |
| Vidal Health Insurance TPA Private Limited | 1004.9 | 891.6 | 876.0 |
| Paramount Health Services & Insurance TPA Private Limited | 856.3 | 920.6 | 839.0 |
| Raksha Health Insurance TPA Private Limited | 662.3 | 671.9 | 713.4 |
| Health Insurance TPA of India Limited | 157.6 | 448.2 | 535.3 |
| Vipul Medcorp Insurance TPA Private Limited | 471.5 | 448.6 | 507.5 |
| Heritage Health Insurance TPA Private Limited | 442.7 | 427.5 | 448.7 |
Medi Assist IPO FAQs:
Q1. What is Medi Assist Healthcare Services IPO?
Ans. Medi Assist Healthcare Services Limited IPO is an offer for sale of 28,028,168 equity shares.
Q2. When will the Medi Assist Healthcare Services IPO allotment be available?
Ans. Details are not available.
Q3. What will be the Medi Assist Healthcare Services IPO lot size?
Ans. Details are not available.
Q4. When will Medi Assist Healthcare Services IPO open for subscription?
Ans. Details are not available.
Q5. What minimum lot size can retail investors subscribe to?
Ans. Retail investors can apply for a minimum of one lot.
Q6. When is the Medi Assist Healthcare Services IPO listing date?
Ans. It usually takes ten working days from the last day of subscription to list the shares on the bourses.
Q7. Which exchanges will Medi Assist Healthcare Services list on?
Ans. The shares will list on the BSE and NSE exchanges.
Q8. Can I submit more than one application for the public issue of Medi Assist Healthcare Services using one PAN?
Ans. No. Only one application is allowed per PAN number.
Q9. I have finished the application process for Medi Assist Healthcare Services’ IPO, but the funds are not yet debited. What is the reason?
Ans. The fund doesn’t get debited immediately. The bank will block the amount on your account when you place the bid. They will deduct the amount when IPO shares get allotted to you, or else they will unblock the amount on the expiration of the UPI mandate.
Q10. Who is the owner of Medi Assist Healthcare Services?
Ans. Dr Vikram Jit Singh Chhatwal is one of the promoters of Medi Assist Healthcare Services.
