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IPO ALERT: Medi Assist Healthcare IPO opens YESTERDAY



The growth in health insurance premiums has been undeniable with the growing awareness of the importance of health coverage, the growth in demand for healthcare services, and the increased affordability of seeking voluntary coverage. In the last 5 years, TPAs have become indispensable in the health insurance industry in India. They have also achieved the same pace of growth as the overall health insurance sector, at a CAGR of 18.51% in the last 5 years.

Medi Assist Healthcare Services Ltd. is a holding company with nine subsidiaries, of which four are direct subsidiaries and five are indirect subsidiaries. The company provides third-party administration services to insurance companies through its wholly-owned subsidiaries, Medi Assist TPA, Medvantage TPA, and Raksha TPA. A third-party administrator is an organisation that processes health insurance claims for insurance companies and provides services such as policy administration, customer service, and network management, among others. As a third-party administrator, Medi Assist acts as a facilitator between (a) insurance companies and their policyholders, (b) insurance companies and healthcare providers (such as hospitals), and (c) the Government and beneficiaries of public health schemes. Subsidiaries Medi Assist TPA and Medvantage TPA contributed 96.32% of revenue from contracts with customers in FY23, and subsidiaries Medi Assist TPA, Medvantage TPA, and Raksha TPA contributed 92.98% of revenue from contracts with customers in 6MFY23. The company also facilitates other healthcare and ancillary services such as hospitalisation services, call centre services, customer relations and contract management services, billing services, and claims processing services through the company and other subsidiaries, including IHMS, Mayfair India, Mayfair UK, Mayfair Group Holding, Mayfair Philippines, and Mayfair Singapore. Medi Assist has developed a Pan-India healthcare provider network that comprises 18,754 hospitals across 1,069 cities and towns and 31 states (including union territories) in India and a network across 141 countries globally as of September 30, 2023.

The company’s total income increased by 25.95% YoY to INR 5,189.55 million for FY23 from INR 4,120.23 million for FY22, primarily due to an increase in revenue from contracts with customers. The company reported a PAT of INR 740.42 million for FY23 as compared to a reported restated profit of INR 642.18 million for FY22. The company reported ROE and ROCE of 21.68% and 29.87% in FY23.

Objects of the issue:
1. Achieve benefits of listing on a stock exchange

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