Medi Assist Healthcare Services, the Bessemer Ventures and Investcorp-backed third-party insurance administrator, on Wednesday fixed Rs 397-418 per share as the price band for its Rs 1,172 crore initial share sale.
The Initial Public Offering (IPO), which will be the maiden issue of 2024, will commence from January 15. The bidding for anchor investors will open on January 12, according to a statement.
Through the issue, that is fully an Offer For Sale (OFS), promoters and existing investors will sell 2.8 crore equity shares.
The selling promoters include company chairman Vikram Jit Singh Chhatwal, Medimatter Health Management, Bessemer Health Capital, and Investcorp Private Equity Fund.
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Under the offer, up to 2,539,092 shares will be offloaded by Chhatwal, 12,468,592 by Medimatter Health Management, 6,606,084 shares by Bessemer, 6,275,706 shares by Investcorp, 26,382 shares by Vivek Pandit, 22,613 shares by Rahul M Khanna, and 17,337 shares by Shankar Rao Palepu along with Palepu Neena Rao among others.
At the upper end of the price band, the company is valued at Rs 2,990 crore, Satish Gidugu, the chief executive of the company told PTI here.
Chhatwal and Bessemer Health Capital together hold 77 per cent of the pre-issue shares of the company, which will after the issue will come down to 40 per cent. Currenty he owns 32 per cent of the undiluted share capital of the company, the chairman told PTI.
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Medi Assist was founded by Sakshi Kabra in 2002 in Bangalore and took on board Bessemer Ventures in early 2011. Later in 2011, Anil Ambani group picked up around 80 per cent stake in the company and later sold majority stake to Investorcorp.
Investcorp is the single largest non-promoter shareholder with a 21.65 per cent stake.
Medi Assist covers over 18,000 hospitals across 1,069 cities and 31 states and have 35 insurers as partners.
Its primary clients are insurers and most of its business comes from group covers/corporate and enjoys 30 per cent market share in this, Chhatwal said, adding overall including retail, its market share is around 7 per cent.
The company covers as much as 78 per cent of the Nifty 50 companies. Only 10 per cent of its revenue come from the central and state government-run mediclaim services, he added.
It had employed around 6,200 people as of September 2023, Mathew George, the chief financial officer of the company said.
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