Medi Assist Healthcare IPO: Investcorp, Bessemer sell shares worth ₹536 crore ahead of Medi Assist IPO opening
Medi Assist IPO: Behind the ₹351 Crore Surge – What You Need to Know Now!
In recent financial headlines, Bengaluru-based health insurance third-party administrator, Medi Assist Healthcare Services, has made waves by successfully raising ₹351.5 crore through its anchor book issue. This move precedes the company’s highly anticipated Initial Public Offering (IPO). In this article, we delve into the specifics of this financial development and what it means for investors and the healthcare industry at large.
Anchor Investment Details
1. Allocating Equity Shares
Medi Assist allocated a substantial 84,08,449 equity shares to anchor investors, pricing them at ₹418 per share, as disclosed in regulatory filings. This strategic move sets the stage for the upcoming IPO, adding a layer of confidence to potential investors.
2. Domestic Mutual Fund Participation
Out of the total equity shares allocated, a significant portion—40,70,768 equity shares—found their way to 11 domestic mutual funds through 18 schemes. The inclusion of domestic mutual funds further underlines the strategic diversity in the investor portfolio.
3. Key Players in Anchor Investors List
The anchor investors list boasts prominent names such as Nomura Trust, Goldman Sachs, Ashoka Whiteoak, Pinebridge Global Funds, Troo Capital, and HSBC. The participation of these heavyweights signals a strong vote of confidence in Medi Assist’s financial health and future prospects.
4. Inclusive Participation
HDFC Mutual Fund, Kotak Mahindra Trustee, Aditya Birla Sun Life Trustee, SBI Life Insurance Company, and others also actively participated in the anchor book, reflecting a broad and inclusive investor base.
IPO Fundraising Strategy
5. Ambitious Fundraising Target
Looking ahead, Medi Assist aims to raise a substantial ₹1,171.6 crore in its upcoming IPO by issuing 2.8 crore equity shares. This ambitious target suggests the company’s confidence in its market position and growth trajectory.
6. Price Range Dynamics
Investors eyeing the IPO should note the price range set at ₹397-418 per share. This range is carefully calculated to attract a wide spectrum of investors, balancing affordability with the company’s perceived value.
7. Exclusively Offer for Sale (OFS)
A unique aspect of Medi Assist’s fundraising strategy is the exclusive reliance on Offer for Sale (OFS) by existing shareholders. This means that the proceeds, after deducting expenses, will directly benefit these selling shareholders.
Major Shareholders and their Stakes
8. Vikram Jit Singh Chhatwal and Savitri Choudhury
The primary sellers in the OFS are Vikram Jit Singh Chhatwal and Savitri Choudhury, owners of Medimatter Health Management. They plan to divest a significant 1,24,68,592 equity shares, providing insight into their confidence in the IPO’s success.
9. Investcorp Private Equity Fund I
Simultaneously, Investcorp Private Equity Fund I, part of the Bahrain-based Investcorp Group, will include the remaining 62,75,706 shares in the OFS. This dual approach adds complexity to the ownership dynamics.
Recent Transactions and Ownership Percentages
10. Investcorp and Bessemer’s Recent Moves
On January 10th, Investcorp and Bessemer India Capital Holdings II offloaded a substantial number of equity shares in anticipation of the IPO launch. This move adjusted their ownership stakes to 9.11 percent and 29.84 percent, respectively.
11. Strategic Share Adjustments
The recent equity share offloading underscores the strategic adjustments undertaken by key stakeholders, positioning themselves for optimal gains in the impending IPO.
Financial Landscape and Future Projections
12. IPO Fundraising Projections
Amidst the buzz surrounding IPOs, Medi Assist’s fundraising efforts are expected to contribute significantly to the industry’s overall IPO fund raising, potentially surpassing ₹4.15 lakh crore for the year.
13. Investor Confidence Boost
The successful anchor book issue and the caliber of investors involved bode well for investor confidence in the IPO. This momentum could potentially translate into a successful fundraising venture for the company.
In conclusion, Medi Assist’s ₹351 crore surge ahead of its IPO showcases a robust financial strategy and a vote of confidence from influential investors. The exclusive reliance on OFS and the participation of renowned domestic and international investors underline the company’s strong market position. Investors should keep a close eye on the IPO’s developments, as it has the potential to reshape the landscape of the healthcare insurance sector.
FAQs (Frequently Asked Questions)
Q1: How much did Medi Assist raise through its anchor book issue?
Medi Assist successfully raised ₹351.5 crore through its anchor book issue.
Q2: What is the price range for Medi Assist’s upcoming IPO?
The price range for Medi Assist’s IPO has been set at ₹397-418 per share.
Q3: Who are the key players in the anchor investors list?
Prominent names in the anchor investors list include Nomura Trust, Goldman Sachs, Ashoka Whiteoak, Pinebridge Global Funds, Troo Capital, and HSBC.
Q4: What is the ownership stake of Investcorp and Bessemer after recent transactions?
Investcorp and Bessemer now hold ownership stakes of 9.11 percent and 29.84 percent, respectively, following recent equity share offloading.