Medi Assist Healthcare will raise money through IPO
May 13, 2021 | Vanshika Kaushik
Medi Assist Healthcare Services Limited provides medical insurance and cashless hospitalization to customers through healthcare service providers . It serves hospitals, nursing homes and diagnostic centres.
It provides cashless hospitalization for patients in dire need. Medi Assist uses Ecards for faster and hassle free processes.
The company understands its integral to process the medical insurance claims at a fast pace; their reimbursement policy allows members to upload original documents on the application. Once the documents are uploaded the company starts with the process of settlement.
MediBuddy, an application by Medi Assist provides personalized services to patients. It has various options for settling the insurance claims. The application even provides a list of nearby hospitals to choose from.
The company’s operating revenue ranges between INR 100 crore to INR 500 crore. It was acquired by Reliance Healthcare in 2006.
Medi Assist has filed the prospectus for raising money through IPO. It registered its documents with SEBI(Securities and Exchange Board of India). The company will offer the sale of equity shares worth 2.8 crore.
It will offer the share sale of its equity shareholders namely Dr. Vikram Jit Singh Chhatwal, Medi Matter Health Management and Bessemer Health Capital LLC .
Axis Capital, Edelweiss Financial Services and IIFL securities have been appointed as merchant bankers to assist the company in raising money through IPO.
As the coronavirus ruled over and disrupted people’s normal life the healthcare sector raked in maximum profit during the year 2020. The insurance sector also got a boost as a lot of individuals rushed to opt for medical insurance amidst pandemic.
Currently there are 30 health insurance companies in India out of which 25 companies are general health insurance companies and 5 are standalone health insurance companies.
The main aim behind an IPO is to raise the desired amount that can be utilized for the company's expansion.
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According to Financial Express, only 10 percent of the total population in India is covered by health insurance (excluding public schemes), which results in higher out-of-pocket expenditure for the majority of the population. Due to increasing awareness after COVID-19 pandemic, it is expected that more people will likely subscribe for health insurance, as well as corporations having a higher employee health focus. Health insurance penetration is expected to reach 16.5% in 2024-2025.
