Medi Assist, a Bengaluru-based health insurance administrator, has filed a draft red herring prospectus (DRHP) with SEBI to raise around Rs 840 crore through an initial public offering (IPO), Moneycontrol.com reported.

It will be India's first IPO by an insurance third-party administrator (TPA), if the plan materialises.

Medi Assist in the past three years has become the country's largest health benefits administrator in terms of revenue and premium services for health insurance policies, according to the report.

The IPO consists of an offer for sale (OFS) component and a partial exit by two private equity investors, Bessemer Ventures and Investcorp, MC reported quoting a source.

Bessemer Ventures and Dr Vikram Jit Singh Chhatwal, executive chairman and whole-time director, hold 45.51 percent and 31.63 percent, respectively. Investcorp has a 21.65 percent stake in the firm.

Medi Assist is far ahead of its competitors in terms of profits and EBIDTA because of its focus on group and retail insurance accounts as compared to public accounts and it has scored high on customer satisfaction, the report said.

Law firms Shardul Amarchand Mangaldas and Khaitan & Co are the legal advisers and the bankers. Axis Capital, Edelweiss Financial Services, IIFL Capital and SBI Capital were the investment banks working on the IPO.

The company managed Rs 7829.5 crore of health insurance premiums in the year 2020. The company had a market share of 29 percent of the private health insurance market serviced by health benefits administrators in India, based on premiums under management for the fiscal year.

More than 60 percent of revenues came from 7,800 corporates across sectors. 48,892 insurance agents and 106 brokers were registered with the firm as of December 31, 2020.