IPO Synopsis
Details on IPO
Medi Assist Healthcare Services Ltd, Bengaluru-based healthcare company, has filed its preliminary papers with SEBI to raise funds via an initial public offering (IPO). The funds raised via the issue are estimated to aggregate upto Rs 840-1,000 crore
The IPO consists of a pure offer for sale (OFS) of 2.8 crore equity shares by Dr. Vikram Jit Singh, Medimatter Health management, Bessemer Health Capital LLC, and Investcorp Pvt. ATE Equity Fund.
The merchant bankers to the issue are Axis Capital, Edelweiss Financial Services, IIFL Securities, and SBI Capital Markets.
Objective of the Issue
The objectives of the issue are achieving the benefits of listing the equity shares on the stock exchanges and for the Offer for Sale of up to 28,028,168 Equity Shares.
About Medi Assist Healthcare Services Ltd
Bengaluru-based Medi Assist is a health-tech and insure-tech company focused on administering health benefits across employers, retail members and public health schemes. It is India’s largest health benefits administrator in terms of revenues and premium serviced for health insurance policies for the financial years 2018, 2019 and 2020.
While under the TPA Regulations, the primary clients are insurance companies, the company also serves as an intermediary between:
(a) general and health insurance companies and the insured members (under retail, corporate and insurance backed public health insurance policies)
(b) insurance companies and healthcare providers (such as hospitals)
(c) the Government and beneficiaries of public health schemes
It has managed Rs. 7,829.5 crores of health insurance premiums in 2020, and also had market shares of 17% of the private health insurance market and of 29% of the private health insurance market serviced by health benefits administrators in India, based on premium under management in 2020.
It has developed a Pan-India healthcare provider network, which comprises over 11,000 hospitals across 722 cities and towns by 2020. It has also serviced over 7,800 corporate accounts across sectors, and in 2020, it managed Rs. 6,243.9 crores of corporate premium, representing 24% of the overall corporate health insurance market in India and 36% of the corporate health insurance market serviced by health benefits administrators.
Medi Assist Healthcare Services Ltd Financial Status
Financials
|
Particulars (in Rs. Crores) |
FY20 |
FY19 |
FY18 |
|
Revenue |
318.59 |
276.82 |
231.76 |
|
EBITDA |
93.56 |
75.51 |
86.06 |
|
PAT |
39.17 |
32.97 |
43.88 |
|
EPS (basic in Rs.) |
5.17 |
3.92 |
6.05 |
|
ROE |
16.11% |
11.90% |
19.49% |
|
Particulars (in Rs. Crores) |
FY20 |
FY19 |
FY18 |
|
Total Assets |
558.17 |
520.76 |
480.22 |
|
Share Capital |
0.04 |
0.04 |
0.04 |
|
Total Borrowings |
71.93 |
52.46 |
52.44 |
|
Particulars (in Rs. Crores) |
FY20 |
FY19 |
FY18 |
|
Net cash generated from / (used in) operating activities |
18.65 |
35.02 |
40.21 |
|
Net cash from / (used in) investing activities |
-22.22 |
-21.08 |
-42.07 |
|
Net cash flow from / (used in) financing activities |
-11.75 |
-10.05 |
-6.85 |
|
Net increase (decrease) in cash and cash equivalents |
-15.32 |
3.90 |
-8.71 |
The key points are-
IPO Key Points
-
Strengths
1. Well-positioned to capture favourable industry dynamics
2. Largest Health Benefits Administrator in India
3. Scalable Technology-Enabled Infrastructure addressing the needs of all constituents of the Health Insurance Ecosystem
4. Longstanding Relationships with a Majority of Indian Insurance Companies
5. Diversified base of Corporates Accounts with Longstanding Relationships
6. Attractive Contracts with a Pan-India Healthcare Provider Network
-
Risks
1. Business is dependent on the continued demand for benefits administration services by insurance companies, corporates and the Central and State Governments
2. Inability to effectively manage and expand its network of healthcare providers
3. Inability to maintain and upgrade its information technology systems, or breaches of data security
4. Any termination or adverse change in relationship or arrangements with insurance companies or corporates
5. Non-compliance with IRDAI inspection or any adverse observations by the IRDAI
6. May be subject to wrongful claims processing that could result in the imposition of penalties or require the firm to pay damages under the contractual arrangements
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