Bessemer India unveils ₹540.94-crore block deal in Medi Assist Healthcare

Bessemer India on Monday (August 2) has launched a block deal in Medi Assist Healthcare Services, which offers third-party administration services to insurance firms, sources said.

The deal size is reported to be ₹540.94 crore, with shares being offered at a floor price of ₹570 per share, according to multiple people familiar with the development. This price represents a 7.7% discount to Medi Assist’s most recent closing price.

Promoter Bessemer India, which is the seller in this transaction, has its remaining holdings in Medi Assist locked until July 18, 2025, the sources told CNBC-TV18. The sole book-running lead manager (BRLM) for the deal is IIFL Securities, the sources added.

Last week, Medi Assist Healthcare Services said its wholly-owned subsidiary Medi Assist Insurance TPA Private Ltd will acquire a 100% equity stake in Paramount Health Services & Insurance TPA Private Ltd (Paramount TPA) for ₹311.8 crore.

Paramount Health Services & Insurance TPA is owned by Fairfax Asia and Dr Nayan Shah and his family. The acquisition represents one of the largest TPA deals in India and equity value is expected to exceed ₹400 crore.

The acquisition was formalised on August 26, 2024, through a share purchase agreement, subject to approval from the Insurance Regulatory and Development Authority of India (IRDAI) and the completion of customary closing formalities.

Paramount TPA, established in 1996 and licensed by IRDAI in 2002, is one of India’s leading third-party administrators, specialising in managing health insurance policies across group, retail, and government segments.

In FY24, Paramount TPA managed ₹3,866 crore in total premiums for the group and retail segments, generating a revenue of ₹153 crore. The company’s strong market presence, particularly in the group segment, where it is the second-largest TPA by premiums, makes it a valuable addition to Medi Assist’s portfolio.

Shares of Medi Assist Healthcare Services Ltd ended at ₹613.45, up by ₹23.80, or 4.04%, on the BSE. CNBCTV18