Medi Assist Healthcare Services shares surged nearly 14% to a record high early on Tuesday, August 27. The stock peaked at ₹639 on the National Stock Exchange (NSE) shortly after trading began, marking a 13.75% increase from the previous closing price. This rise pushed the stock up about 39% from its post-IPO listing price of ₹460, which debuted on January 23, 2024.
By noon, the shares had settled slightly but were still 8.5% higher, trading at ₹609.6 on the NSE. The surge in Medi Assist’s stock price is linked to a major announcement made after market hours on Monday.
Medi Assist revealed that it will fully acquire Paramount Health Services & Insurance TPA in a deal valued at over ₹400 crore. The acquisition will be carried out by Medi Assist Insurance TPA, a wholly-owned subsidiary of Medi Assist Healthcare Services. The deal involves acquiring Paramount from Fairfax Asia and the Shah family.
Paramount Health Services is a significant player in the TPA industry, working with 30 insurers and serving over 3,000 group customers and retail policyholders. The transaction, valued at around ₹311 crore, also includes ₹110 crore in cash equivalents.
This acquisition will expand Medi Assist’s market share to 36.6% in the group segment and 23.6% in the health insurance sector by premiums managed. The deal, one of the largest TPA transactions in India, is pending regulatory approval from Irdai. The merger aims to enhance Medi Assist’s market leadership and advance its goal of making quality healthcare more accessible.
