Medi Assist Healthcare Services Limited

Medi Assist Healthcare Services Limited -IPO DETAILS 

Company Overview 

Medi Assist Healthcare Services offers third-party administration services, including customer service and network management, to insurance companies globally. The company serves more than 35 domestic and international insurance providers. As of the fiscal year 2022, Medi Assist TPA holds a 14.83% market share in retail health insurance and a 41.71% market share in group health insurance. In FY23, the company successfully managed health insurance premiums totaling Rs. 14,574.65 Crores for both group and retail segments. Through its international subsidiaries operating under the name Mayfair Group, Medi Assist extends hospitalization, call center, billing, and claim processing services in countries such as the UK, Australia, Singapore, and others. 

The company has established an extensive healthcare provider network comprising 18,754 hospitals spanning 1,069 cities and 31 towns, and it extends its coverage to over 141 countries worldwide. Medi Assist has effectively served more than 9,500 group accounts across various sectors, overseeing the insurance needs of numerous companies. In the fiscal year 2023, the company successfully handled group health insurance premiums amounting to over Rs. 12,818 Crores, constituting approximately 28% of India's entire group health insurance market. Additionally, in terms of individual policyholders, Medi Assist has administered policies valued at over Rs. 1,757 Crores, representing 5.06% of India's retail health insurance market as of FY23. 

Objective of the IPO 

Here are a few quick reasons why company is going public:  

1. The primary goal of the offer is to facilitate a timely and lucrative exit for the promoters while also realizing the advantages associated with listing Equity Shares on the Stock Exchanges.  

Company Financials 

Key Performance Indicator 

Pros 

1. The company, along with its subsidiaries, commands a substantial 30.03% market share in group insurance and 6.98% in retail insurance policies.  

2. Leveraging its integrated technological platform with insurance companies, Medi Assist facilitates swift claim settlement and cost reduction.  

3. With a widespread presence, the company boasts a pan-India network of 18,754 hospitals covering 1,069 cities and 31 states.  

4. Medi Assist has demonstrated success in acquiring businesses, seamlessly integrating them under its group, and fostering synergies across subsidiaries. The company expresses its commitment to pursuing further acquisitions of similar companies in the future. 

Cons 

1. The company faces a notable revenue concentration risk, with the top five clients contributing 81.54% of its FY23 revenue.  

2. The business exhibits significant dependence on the IT and BFSI segments, accounting for 46% and 21% of the revenue, respectively.  

3. In H1FY24, the net operating cash flow was Rs. -18.91 Cr, primarily attributed to a surge in trade receivables amounting to Rs. 84 Cr.  

4. The PE valuation of 39x appears to be relatively high, considering the company's revenue growth at a CAGR of just 23% since FY21. 

How to Apply for this IPO 

1. Go to https://ipo.adityatrading.in/ 

2. Enter your Client ID 

3. Enter the OTP received in your registered mobile number. 

4. Choose the IPO and click on apply button. 

5. Enter the UPI ID, Quantity, and Cut off the price. 

6. Click on submit button 

7. Confirm the mandate request received on your phone by entering the UPI Pin. 

You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”