Investcorp Private Equity Fund I, a part of the Bahrain-based Investcorp Group, is set to exit Medi Assist Healthcare Services with a substantial profit of Rs 536.6 crore after the company’s maiden public issue.
According to the red herring prospectus, Investcorp initially held a 21.65 percent shareholding (1,49,10,452 equity shares) in the Bengaluru-based healthtech firm. Just before the IPO opening, on January 10, Investcorp sold (transferred) 86,34,746 equity shares, equivalent to 12.54 percent of the pre-offer equity capital, at Rs 418 per share, amounting to Rs 360.93 crore. As a result, Investcorp’s shareholding in Medi Assist Healthcare Services reduced to 9.11 percent (62,75,706 shares).
The shares were acquired by six investors, including SBI Life Insurance Company (3.51 percent), Ashoka India Equity Investment Trust PLC (2.08 percent), Volrado Venture Partners Fund -III-Beta (2.78 percent), SBI General Insurance Company (1.39 percent), and 360 One Special Opportunities Fund (Series 9 and Series 10 – 2.78 percent together).
This share sale by Investcorp is separate from the equity shares proposed to be sold through an offer-for-sale (OFS) during the IPO period from January 15 to 17. Investcorp, as the largest public shareholder in Medi Assist, will be selling an additional 62,75,706 equity shares in the OFS, totaling Rs 262.32 crore at the upper price band.
Investcorp will completely exit the health insurance third-party administrator through the IPO, generating a total sum of Rs 623.25 crore from the stake sale of 21.65 percent. The total stake was initially valued at Rs 86.66 crore at a price of Rs 58.12 (weighted average cost of acquisition per equity share). Considering the IPO price of Rs 418 per share, Investcorp is set to make a total profit of Rs 536.6 crore.
Investcorp Private Equity Fund I, a unit scheme of Investcorp Infrastructure Fund 1 managed by Investcorp India Asset Managers, became a shareholder in Medi Assist in 2013.
In addition to Investcorp, the promoter Bessemer India Capital Holdings II also sold 41,86,500 equity shares (equivalent to 6.08 percent of the pre-offer equity share capital) in Medi Assist to Novo Holdings A/S at the same price on January 10, amounting to Rs 175 crore. Following this transaction, Bessemer India Capital Holdings II’s shareholding in Medi Assist reduced to 29.84 percent from 35.92 percent.
Medi Assist Healthcare Services is set to launch its IPO on January 15, with an offer-for-sale (OFS) structure by existing shareholders. The price band for the IPO is set at Rs 397-418 per share. Apart from Investcorp, other exiting shareholders include promoters Vikram Jit Singh Chhatwal and Bessemer Health Capital LLC.
The promoters will be selling their entire personal shareholding in the IPO. The offering will also include an OFS by promoter Medimatter Health, owned by Vikram Jit Singh Chhatwal and his wife Savitri Choudhury. Medimatter Health will be offloading 1,24,68,592 equity shares.
