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Bessemer Ventures & Investcorp-backed Health Insurance Company Medi Assist has filed a draft red herring prospectus (DRHP) with the market regulator Sebi to raise around Rs 840 crore through an initial public offering (IPO), reports Moneycontrol.

Medi Assist decision comes at a time when the coronavirus outbreak accelerating the adoption of health insurance across the country.

According to Arvian Research, Medi Assist IPO will be India’s first IPO by an insurance TPA (third-party administrator). In the past three years, Medi Assist has emerged as the country’s largest health benefits administrator in terms of revenue and premium services for health insurance policies.

Market penetration

“It is a fact that India is less insured country compared with other nations, especially North America and Europe. There is a market demand for insurance support across the country. Medi Assist’s decision to go for IPO will further strengthen its market penetration,” said Arvian Research.

According to sources privy to the development, Medi Assist filed its papers with the regulator on May 10th late evening. The IPO consists of a pure OFS ( offer for sale) component and a partial exit by its two private equity investors and selling shareholders Bessemer Ventures and Investcorp is the main trigger.

A TPA is an entity or a firm that processes medical insurance claims. Every insurance company appoints TPAs for settlements of health policy claims. When a claim is filed under a health policy, the TPA manages the documentation and processing and passes on the information to the insurer for settlement.

(The story is based on inputs from Moneycontrol)

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