Medi Assist Healthcare IPO: A Deep Dive into the ₹351 Crore Anchor Investment

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By Umesh Sharma

Medi Assist Healthcare IPO: A Deep Dive into the ₹351 Crore Anchor Investment-The healthcare sector is abuzz with excitement as Bengaluru-based health insurance third-party administrator, Medi Assist Healthcare Services, secures an impressive ₹351.5 crore through its anchor book issue ahead of its much-anticipated Initial Public Offering (IPO).

Medi Assist Healthcare IPO: A Deep Dive into the ₹351 Crore Anchor Investment

 

Medi Assist Healthcare IPO: A Deep Dive into the ₹351 Crore Anchor Investment

Anchor Investors’ Frenzy

In a strategic move, Medi Assist allocated a substantial 84,08,449 equity shares to anchor investors at ₹418 per share. This article delves into the key players and their significant roles in this anchor investment.

Investcorp Private Equity Fund I’s Strategic Move

Investcorp Private Equity Fund I, a prominent investor, decreased its ownership of Medi Assist Healthcare Services ahead of the IPO. The equity shares were transferred at the upper price band, amounting to a noteworthy ₹360.93 crore.

Bessemer India Capital Holdings II’s Shift in Shareholding

Bessemer India Capital Holdings II, a key promoter, initiated a significant share transfer, impacting its ownership from 35.92% to 29.84%. The transfer, valued at ₹175 crore, marked a strategic move in the company’s ownership structure.

Novo Holdings A/S Emerges as a Key Player

Denmark-based Novo Holdings A/S enters the scene, acquiring a substantial share from Bessemer India Capital Holdings II. This transfer positions Novo Holdings A/S as a new public shareholder in Medi Assist Healthcare Services.

Share Value Dynamics and Stakeholder Reshuffling

A detailed analysis of the January 10 share transactions reveals the complexities of the stake shuffle. Bessemer India Capital Holdings II and Investcorp’s dynamic equity share maneuvers are thoroughly explored.

Bessemer India Capital Holdings II’s Shareholding Evolution

The notice sent to investors unveils the reduction in Bessemer India Capital Holdings II’s shareholding from the filing of the red herring prospectus to the current 29.84%, offering a comprehensive timeline of the shift.

Investcorp’s Strategic Equity Share Sale

Investcorp’s sale of 86,34,746 equity shares, amounting to 12.54% of the pre-offer equity capital, is scrutinized. The investors who acquired these shares, including SBI Life Insurance Company and Ashoka India Equity Investment Trust PLC, are revealed.

Insights into the IPO Details

The article provides an in-depth overview of the upcoming IPO, including the price band, subscription dates, and key players involved in managing the IPO process.

Medi Assist Healthcare Services IPO Price Band

An exploration of the fixed price band, ranging from ₹397 to ₹418 per equity share, sets the stage for potential investors, giving them insights into the valuation of the company.

Allocation to Anchor Investors and IPO Timeline

The timeline for the IPO subscription, closing on January 17, and the preceding allocation to anchor investors on January 12 are detailed. This information is crucial for investors planning to participate in the IPO.

Grey Market Premium: A Market Indicator

A closer look at the Grey Market Premium (GMP) reveals intriguing trends. The article deciphers the fluctuations in GMP and its potential impact on the listing price of Medi Assist Healthcare Services shares.

GMP Trends and Estimated Listing Price

The analysis showcases the GMP’s journey from +80 to +64, indicating investors’ sentiment. The estimated listing price, considering the upper end of the price band and the current GMP, is projected at ₹482 per share.

Fund Utilization Strategy: Offer for Sale Dynamics

Medi Assist’s IPO, valued at ₹1,171.58 crore, employs an Offer for Sale (OFS) strategy. The article elucidates how this strategy exclusively benefits existing shareholders, with no provision for a fresh issue.

Key Players in the IPO Process

The book-running lead managers and the registrar of the offering play pivotal roles. The involvement of Axis Bank Limited, IIFL Securities Limited, Nuvama Wealth Management Limited, and SBI Capital Markets Limited is outlined, offering insights into the IPO management team.

Medi Assist’s Diverse Subsidiaries: An Added Advantage

A brief exploration of Medi Assist Healthcare Services’ wholly-owned subsidiaries – Medvantage TPA, Raksha TPA, and Medi Assist TPA – sheds light on the organization’s diverse services, including network management, policy administration, and customer service.

Promoter Divestment: Vikram Jit Singh Chhatwal and Investcorp’s Move

Details surrounding the divestment of equity shares by Vikram Jit Singh Chhatwal and Investcorp Private Equity Fund I are highlighted. This section provides a comprehensive understanding of the stakes involved.

Conclusion

As Medi Assist Healthcare Services gears up for its IPO, the landscape is rife with strategic moves, dynamic equity share transactions, and investor sentiments. This article navigates the intricacies, providing a holistic view of the ₹351.5 crore anchor investment and the upcoming IPO.

Frequently Asked Questions (FAQs)

  1. Q: How much did Bessemer India Capital Holdings II transfer in equity shares, and to whom?
    • A: Bessemer India Capital Holdings II transferred 41,86,500 equity shares, valued at ₹175 crore, to Denmark-based Novo Holdings A/S.
  2. Q: What is the Grey Market Premium (GMP) for Medi Assist Healthcare Services shares?
    • A: As of the latest update, the GMP stands at +64, indicating a premium of ₹64 in the grey market.
  3. Q: What is the estimated listing price of Medi Assist Healthcare Services shares?
    • A: Considering the upper end of the IPO price band and the current GMP, the estimated listing price is projected at ₹482 per share.
  4. Q: How much is Medi Assist looking to raise in its IPO?
    • A: Medi Assist aims to raise over ₹1,171.6 crore by issuing 2.8 crore equity shares in its upcoming IPO.
  5. Q: Which investors acquired the equity shares offloaded by Investcorp, and how many shares were sold?

    • A: SBI Life Insurance Company, Ashoka India Equity Investment Trust PLC, Volrado Venture Partners Fund -III-Beta, SBI General Insurance Company, and 360 One Special Opportunities Fund collectively purchased 86,34,746 equity shares from Investcorp on January 10.
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