Market News
Medi Assist shares soar nearly 14% to all-time high; here's why
.png)
2 min read | Updated on August 27, 2024, 13:00 IST
SUMMARY
Medi Assist, which made its market debut in January this year, has gained by nearly 39% since its listing. The stock witnessed a sharp climb today in the aftermath of the deal announced to acquire Paramount Health.
Stock list
Medi Assist launched an IPO earlier this year, and was subsequently listed on the exchanges on January 23
Within an hour of the opening bell, the stock touched a high of ₹639 apiece on the National Stock Exchange (NSE), which was up 13.75% as against the last closing price.
At this rate, Medi Assist marked a gain of nearly 39% as compared to the post-IPO listing price of ₹460 per share. The company had made its debut on the bourses on January 23, 2024.
As trading progressed today, Medi Assist pared some of the day's gains. At 12:32 pm, the scrip was trading 8,5% higher at ₹609.6 on the NSE.
Why Medi Assist's shares rallied today
Post the market hours on Monday, Medi Assist informed the exchanges that it will fully acquire Paramount Health Services & Insurance TPA in a deal valued at over ₹400 crore.
Medi Assist Insurance TPA, a wholly-owned subsidiary of Medi Assist Healthcare Services, has inked a pact with Fairfax Asia and Nayan Shah & family to acquire Mumbai-based Paramount Health Services & Insurance TPA.
Paramount is a prominent player in the TPA space, owned by Fairfax Asia and the Shah family.
With the acquisition of Paramount TPA, Medi Assist TPA's market share will grow to 36.6 per cent for the group segment and 23.6 per cent of the health insurance industry, by premiums managed, the company said.
The deal was concluded at an enterprise value of about ₹311 crore, and around ₹110 crore of cash equivalents will be paid as part of the acquisition, it added.
The acquisition represents one of the largest TPA deals in India, subject to regulatory (Irdai) approvals, it added.
Paramount TPA works with 30 insurers, and over 3,000 group customers and retail policyholders.
"This strategic move strengthens our market leadership and aligns with our long-term vision of making quality healthcare accessible and efficient. I welcome the Paramount team to the Medi Assist family and to achieving greater milestones," Medi Assist CEO Satish Gidugu said.
Paramount TPA MD Nayan Shah said the coming together of two leading TPAs will go a long way in delivering on the promise of insurance for all by 2047.
About The Author
Next Story
