Medi Assist Group continues to look at the listing opportunity and will re-file preliminary papers with Sebi to launch an initial public offering (IPO) “whenever the time is right”.
Medi Assist Healthcare Services had filed the draft red herring prospectus with Sebi in 2021 to float an IPO. The proposed IPO was entirely an offer for sale (OFS) by promoters and existing shareholders. However, at that time, the group decided not to go ahead with it, and the approval given by the regulator expired.
“It will depend on the timing. At that point of time if we think there is anything we will require, we would absolutely consider it. At this point of time, I have no specific views,” Gidugu said when asked about the timing of re-applying and if the proposed isssue will comprise both OFS and fresh issuance of equity shares.
Medi Assist Insurance TPA, a part of Medi Assist Group, last month entered into a definitive agreement with Raksha Health Insurance TPA to acquire a 100% stake in the latter. With this acquisition, Medi Assist will potentially add over 10% in size and scale and over 20% in retail market share.
“We acquired four domestic TPAs because we believe that customers want scale, pan-India presence, network and technology. It needs a lot of investment, and we believe that the market is ripe for consolidation for a few large and well-capitalised players. We always like that consolidation,” Gidugu said.
The company so far made all the acquisitions through internal accruals. In FY22, Medi Assist Insurance TPA’s revenue stood at Rs 393 crore.
On the current market share in the TPA space, the CEO said, “We will wait for the full year (FY23) numbers to come. It would be closer to a third, if you include the acquisition.”
“We have mostly grown faster than the industry. We have grown significantly in the corporate sector. We have also made a lot of new investments in retail insurance. We want to offer retail customers the same kind of technology and experiences that group customers enjoy,” Gidugu said.