India's Medi Assist Healthcare hits record high on buying Paramount TPA

Medi Assist Healthcare Services

27/08/2024 05:42

** Shares of Medi Assist Healthcare Services  MEDA.NS  rise
as much as 11.2% to a record high of 624.90 rupees
    ** Stock last up 8.6%, set for best day on record
    ** Co acquires Paramount Health Services & Insurance TPA for
enterprise value of 3.12 bln rupees ($37.2 mln) and equity
valuation "expected to exceed" 4 bln rupees
    ** Says market share to increase ~6% in Group segment and by
~4% in health insurance industry
    ** Investec says 4 bln rupee valuation of Paramount implies
2.5X FY24 sales
    ** Says the deal is at a higher multiple than MEDA's
acquisitions of Raksha (1.7x sales) and Medvantage (1x sales)
but this is justified given Paramount's profitability is larger
than Raksha and Medvantage
    ** Adds says the acquisition suggests 12%-15% upgrade to its
FY26 PAT estimate for MEDA, but will revise estimates after
conference call on Aug. 27
    ** Stock was listed on Jan. 23; up ~46% from IPO price

($1 = 83.9300 Indian rupees)

 (Reporting by Varun Vyas in Bengaluru)
 ((varunvyas.hebbalalu@thomsonreuters.com))