May 11, 2021 04:58 PM
Bessemer Ventures & Investcorp-backed Medi Assist Files, With the coronavirus outbreak accelerating the adoption of health insurance, Bengaluru-based Medi Assist has filed a draft red herring prospectus (DRHP) with the market regulator Sebi to raise around Rs 840 crore through an initial public offering (IPO), sources told Moneycontrol.
If the listing plan fructifies, it will be India’s first IPO by an insurance TPA (third-party administrator). In the past three years, Medi Assist has emerged as the country’s largest health benefits administrator in terms of revenue and premium services for health insurance policies.
“Medi Assist filed its papers with the regulator, late on the evening of May 10, 2021. The IPO consists of a pure OFS ( offer for sale) component and a partial exit by its two private equity investors and selling shareholders Bessemer Ventures and Investcorp is the main trigger,”.
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A TPA is an entity or a firm that processes medical insurance claims. Every insurance company appoints TPAs for settlements of health policy claims. When a claim is filed under a health policy, the TPA manages the documentation and processing and passes on the information to the insurer for settlement.
Bessemer Ventures & Investcorp-backed Medi Assist Files, and Dr Vikram Jit Singh Chhatwal are the promoters of Medi Assist and hold 45.51 percent and 31.63 percent, respectively. Investcorp holds a 21.65 percent stake in the firm.
“They ( Medi Assist) are a market leader and best positioned to capture the growing demand in the segment due to low penetration levels and there will be very strong tailwinds even after COVID-19. This offer should see strong interest,”.
Confirming the filing of the DRHP, a third individual told Moneycontrol, “ Medi Assist is far ahead of its peers in terms of profits and EBIDTA due to its focus on group and retail insurance accounts as compared to public accounts. It’s a tech-centric firm which has scored high on customer satisfaction.”