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Medi Assist Healthcare Services has filed preliminary papers with capital markets regulator Securities and Exchange Board of India (Sebi) to float an initial share sale.

The initial public offer (IPO) is entirely an offer of sale of up to 28,028,168 equity shares of Medi Assist by promoters and existing shareholders, according to the draft red herring prospectus.

Those selling shares in the offer for sale include Dr Vikram Jit Singh Chhatwal, Medimatter Health Management, Bessemer India Capital Holdings II Ltd, Bessemer Health Capital LLC and Investcorp Private Equity Fund I.

Bengaluru-based Medi Assist is a healthtech and insurtech company focused on administering health benefits across employers, retail members and public health schemes. As per the draft papers, the company managed Rs 7,829.5 crore of health insurance premiums for the financial year 2020.

Axis Capital, Edelweiss Financial Services, IIFL Securities, and SBI Capital Markets have been appointed as merchant bankers to advise the company on the IPO. Link Intime India Private Ltd is the registrar for Medi Assist Healthcare issue.

For the nine-month ended December 2020, the company reported a total income of Rs 257.44 crore against Rs 245.16 crore a year ago. Its profit after tax was at Rs 33.09 crore for the nine months ended December 2020 as compared to Rs 31.04 crore in the same period last year.

Medi Assist is a health tech and insurtech company focused on administering health benefits across employers, retail members and public health schemes.

According to DRHP, only 10 percent of the total population in India is covered by health insurance (excluding public schemes), which results in higher out-of-pocket expenditure for the majority of the population. Due to increasing awareness after the COVID-19 pandemic, it is expected that more people will likely subscribe for health insurance, as well as corporations having a higher employee health focus.

(Disclaimer: Additional background information has been added to this PTI copy for context)