Medi Assist Healthcare Services Limited provide third party administration services to insurance companies through the wholly owned Subsidiaries, Medi Assist TPA, Medvantage TPA (from February 13, 2023) and Raksha TPA (from August 25, 2023). A third party administrator is an organization that processes health insurance claims for insurance companies and provides services such as policy administration, customer service and network management, among others. As a third party administrator, they act as a facilitator between (a) insurance companies and their policy holders, (b) insurance companies and healthcare providers (such as hospitals), and (c) the Government and beneficiaries of public health schemes. The Subsidiaries, Medi Assist TPA and Medvantage TPA, contributed to 96.32% of the revenue from contracts with customers in the Financial Year 2023 and the Subsidiaries, Medi Assist TPA, Medvantage TPA and Raksha TPA contributed 92.98% of the revenue from contracts with customers in the six months ended September 30, 2023. Medi Assist TPA had a market share of 14.83% of the retail health insurance market and 41.71% of the group health insurance market, and a cumulative retail and group segment share of 33.67% serviced by third party administrators, as of Financial Year 2022. They managed Rs 145,746.49 million of health insurance premiums (group and retail) as at the end of Financial year 2023 growing at a CAGR of 35.67% from Rs 79,184.93 as at the end of Financial Year 2021. As of September 30, 2023, they work with 35 insurance companies in India and globally. They also facilitate other healthcare and ancillary services such as hospitalization services, call centre services, customer relations and contract management services, billing services and claims processing services through our Company and the other Subsidiaries, IHMS, Mayfair India, Mayfair UK, Mayfair Group Holding, Mayfair Philippines and Mayfair Singapore. They have developed a pan-India healthcare provider network which comprises 18,754 hospitals across 1,069 cities and towns and 31 states (including union territories) in India and network across 141 countries globally, as on September 30, 2023. The technology-driven infrastructure and services are custom-built, and assist various stakeholders such as insurance companies, hospitals, insurance brokers and insurance agents in their operations, and are scalable, comprehensive, easy to use and secure. This enables to offer a comprehensive healthcare solution to the customers, encompassing an extensive in-patient and out-patient network, on-demand health services, robust management of fraud, waste, and abuse, as well as effective medical inflation control. During the Financial Year 2023, they helped settle 5.27 million claims, comprising 2.44 million in-patient claims and 2.83 million domiciliary or out-patient claims. During the six months ended September 30, 2023, they helped settle 3.05 million claims, comprising 1.37 million in-patient claims and 1.68 million domiciliary or out-patient claims. Due to the size and scale of the operations and the contracting capabilities, they are able to negotiate discounted rates with hospitals for the benefit of insurance companies and insured members, thereby managing medical inflation better. As per financial performance, Medi Assist Healthcare Services Limited has posted total income / net profits of Rs 345.57 Cr / Rs 38.01 Cr (FY21), Rs 412.02 Cr / Rs 63.47 Cr (FY22), Rs 518.96 Cr / Rs 75.31 Cr (FY23) and Rs 312.03 Cr / Rs 24.26 Cr (upto Q2 FY24). So as per previous financials data, company has shown good growth. Company has an average EPS of Rs 9.4 and average RoNW of 18.22% for last three fiscals. Issue is priced at a P/BV of 6.91 as per NAV of 60.51 as on 30.09.23. If we attribute latest earnings of FY22, FY23, and annualised FY24 on fully diluted equity post issue, then asking price is at a P/E of around 45.35, 38.22 and 59.33 respectively, which looks aggressively priced. As per RHP, there are no listed peers. On BRLM's front, four lead managers are associated with this IPO, and have handled around 129 IPOs in last three fiscals. Axis Capital Limited : This is 50th IPO from this BRLM. From last 10 IPOs, one is opened below issue price and remaining above issue price or at par on the day of listing. As of now, from last 10 IPOs, all are trading above issue price or at par. ( As on 10.01.2024 ) IIFL Securities Limited : This is 43rd IPO from this BRLM. From last 10 IPOs, two opened below issue price and remaining above issue price or at par on the day of listing. As of now, from last 10 IPOs, all are trading above issue price or at par. ( As on 10.01.2024 ) Nuvama Wealth Management Limited : This is 19th IPO from this BRLM. From last 10 IPOs, one is opened below issue price and remaining above issue price or at par on the day of listing. As of now, from last 10 IPOs, all are trading above issue price or at par. ( As on 10.01.2024 ) SBI Capital Markets Limited : This is 21st IPO from this BRLM. From last 10 IPOs, four opened below issue price and remaining above issue price or at par on the day of listing. As of now, from last 10 IPOs, three are trading below issue price and remaining are trading above issue price or at par. ( As on 10.01.2024 ) As per financials, Medi Assist Healthcare Services Limited has shown good growth, RoNW is 19.63% and P/E is respectively 45.35, 38.22 and 59.33 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fully priced. Due to unique business model, it may get first mover advantage also. Company is in business of providing third party administration services to insurance companies through the wholly owned Subsidiaries. Performance of BRLM is good. So, we give SUBSCRIBE rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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