Shares of Medi Assist Healthcare Services Ltd surged early 9% after the company on Monday (August 26) said its wholly-owned subsidiary Medi Assist Insurance TPA Private Ltd will acquire a 100% equity stake in Paramount Health Services & Insurance TPA Private Ltd (Paramount TPA) for ₹311.8 crore.
Finalized on August 26, 2024, the acquisition is poised to strengthen Medi Assist TPA’s standing in the insurance intermediary sector.
Founded in 1996 and licensed by the IRDAI in 2002, Paramount TPA is a prominent third-party administrator in India with a significant presence in group, retail, and government segments. In FY24, Paramount TPA handled premiums amounting to ₹3,866 crore and generated ₹153 crore in revenue.
Medi Assist TPA plans to use this acquisition to increase its market share, enhance operational efficiencies, and reinforce its role as a strategic partner to insurers nationwide. The combined market share in the group segment will rise to 36.6%, with a 23.6% share across the entire health insurance industry in India.
As of 9:15 am the shares of Medi Assist Healthcare Services were trading 8.21% higher at ₹607.85 on NSE.
