Medi Assist Health sees decent debut, lists at 11% premium over issue price

Medi Assist Healthcare Services made a strong market debut with its shares listing at Rs 465 on BSE, a premium of 11 per cent over its issue price of Rs 418 on Tuesday.

On the National Stock Exchange (NSE), the stock of the insurance distributors company opened at Rs 460, up 10 per cent over its issue price.

Post listing, the stock moved 24 per cent higher to Rs 518 on NSE. It hit a high of Rs 509.60 on the BSE in intra-day trade.

As of 10:32 am, a combined 11.1 million equity shares changed hands on the NSE and BSE.

Medi Assist Healthcare Services is a third-party insurance administrator backed by Bessemer Ventures and Investcorp.

The company provides third party facilities between insurance companies and their policy holders, insurance companies and healthcare providers (such as hospitals) and the government and beneficiaries of public health schemes.

Medi Assist TPA, a subsidiary company, had a market share of 14.8 per cent of the retail health insurance market and 41.7 per cent of the group health insurance market and a cumulative retail and group segment share of 33.7 per cent serviced by third party administrators, as of FY22.

With a vast pan-India healthcare provider network, Medi Assist Healthcare Services manages Rs 14,575 crore in health insurance premiums, demonstrating a robust CAGR of 35.7 per cent.

The company collaborates with 35 insurance companies globally, offering a comprehensive healthcare solution and settling millions of claims annually.

The company has consistently delivered healthy financial performance with its revenue/EBITDA/PAT growing at a CAGR of 25.1 per cent/25.7 per cent/40.8 per cent from FY21- FY23.

As of FY23, the company holds 17.3 per cent of the total premium served in the TPAs industry and contributes around 28.6 per cent/48.8 per cent/56.4 per cent of revenue/EBITDA/PAT of the total TPAs industry.

Premium serviced by TPA’s is expected to grow at a CAGR of 24 per cent plus with penetration expected to increase further to 61.2 per cent from 54.7 per cent during FY22-FY28F on back of enhanced value proposition to insurers by TPAs, SBI Securities said in the IPO note.

As Medi Assist Healthcare Services continues to explore growth opportunities and pursue strategic M&A activities, its commitment to innovation, technological excellence and comprehensive healthcare solutions reinforces its leadership in the industry, said Ventura Securities.