The shares of this small-cap company gained up to 14 percent after the company’s subsidiary entered into a share purchase agreement to acquire a 100% equity share in Paramount Health Services & Insurance TPA Private Limited.
With a market capitalization of Rs 4,325.79 crore, the shares of Medi Assist Healthcare Services Ltd were trading at Rs 611.40 per share, increasing around 9 percent as compared to the previous closing price of Rs 561.10 apiece.
Reason for Rise:-
Today, the shares of the company have seen drastic movement after Medi Assist Insurance TPA Private Limited (“Medi Assist TPA”), a wholly-owned subsidiary of the Company, entered into a share purchase agreement for the acquisition of a 100 percent equity stake in Paramount Health Services & Insurance TPA Private Limited. This transaction was valued at Rs 311.8 crore.
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Furthermore, as of FY24, Paramount TPA is the 2nd largest TPA in the group segment with a 6.2% market share. Combined with Medi Assist, their market share in the group segment reaches 36.6% and 23.6% in the overall health insurance industry.
Moreover, this acquisition will enable Medi Assist to deliver further efficiencies across teams, technology, and inpatient/outpatient networks thereby strengthening its proposition as a long-term strategic partner to Insurers. Meanwhile, this acquisition is expected to be completed in 4-6 months by the end of FY2025.
Financial performance:-
Analyzing a company’s financial performance, revenue zoomed by 19 percent from Rs 141 crore in Q1FY24 to Rs 168 crore in Q1FY25, during the same time frame, the company’s net profit zoomed significantly by 6 percent from Rs 18 crore to Rs 19 crore.
Footprint:-
The firm served over 9500 group accounts in various industries to assist employers in administering their employees’ insurance needs. It accounted for 26.39% of India’s total group health insurance market in FY23.
Company Profile:-
Medi Assist Healthcare Services Limited is a health and insurance technology firm that administers health benefits for employers, retail members, and public health schemes, with a focus on insurance companies.
Written by:- Abhishek Singh
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