Medi Assist shares surge 8.88% post acquisition bid

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Medi Assist Healthcare Services Limited saw its shares rise by 8.88 per cent, reaching ₹610.90, after it was announced that its subsidiary Medi Assist Insurance TPA Private Limited is acquiring a 100 per cent stake in Paramount Health Services & Insurance TPA Private Limited for ₹311.8 crore. The deal, disclosed on August 26, 2024, is projected to conclude by FY2025, pending regulatory approvals.

Paramount TPA, a significant player in India’s group insurance sector, managed ₹3,866 crore in total premiums in FY24, with operational revenue of ₹153 crore. The acquisition is set to boost Medi Assist’s market share in the group segment to 36.6 per cent and overall health insurance market share to 23.6 per cent.

The acquisition is meant to enhance Medi Assist’s operational efficiency and expand its reach across teams, technology, and healthcare networks, the company said. The transaction awaits the Insurance Regulatory and Development Authority of India’s (IRDAI) in-principle approval for the change in shareholding.