Medi Assist Healthcare Services: Major Block Deal Worth RS 580.5 crore

On Tuesday, September 3, a significant transaction took place in the equity market as approximately 95 lakh shares, or 13.5% of the equity of Medi Assist Healthcare Services, worth Rs 580.5 crore, changed hands in a block deal. The shares were traded at Rs 612 each, marking a pivotal moment for the company and its shareholders.

Bessemer India’s Block Deal: Key Highlights

According to reports, the block deal was launched by Bessemer India, a prominent promoter and investor in Medi Assist Healthcare Services. The total deal size was reported to be Rs 540.94 crore, with shares offered at a floor price of Rs 570 per share. This floor price represented a 7.7% discount to Monday’s closing price, making it an attractive entry point for investors.

Bessemer India, acting as the seller in this transaction, still holds a significant portion of its stake in Medi Assist, although these remaining holdings are locked until July 18, 2025, as per insider sources. Data from the Bombay Stock Exchange (BSE) reveals that Bessemer India Capital Holdings had a 29.22% stake in the company at the end of the June quarter.

Recent Strategic Acquisition: Expanding Footprint in the TPA Sector

In a strategic move to enhance its footprint in the Third Party Administrator (TPA) segment, Medi Assist Healthcare Services recently announced that its wholly-owned subsidiary, Medi Assist Insurance TPA Private Ltd, would acquire a 100% equity stake in Paramount Health Services & Insurance TPA Private Ltd (Paramount TPA). This acquisition, valued at ₹311.8 crore, marks one of the largest TPA deals in India, with the equity value expected to exceed ₹400 crore.

Paramount TPA is co-owned by Fairfax Asia and Dr. Nayan Shah along with his family, making this acquisition a landmark event in the Indian healthcare sector. The acquisition was formalized on August 26, 2024, through a share purchase agreement, subject to approval from the Insurance Regulatory and Development Authority of India (IRDAI) and the fulfillment of customary closing conditions.

Market Reaction: Share Price Movement

Following the news of the block deal and the strategic acquisition, shares of Medi Assist Healthcare Services traded higher by 2.45% on Tuesday, reaching Rs 633. The stock has shown a positive trend, climbing 7.21% in September so far.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.