Shares of Medi Assist Healthcare Services Ltd. rallied by 9%, touching a day’s high of Rs 639 on 27th August, after the company announced that its wholly-owned subsidiary, Medi Assist Insurance TPA Private Ltd., will acquire full ownership of Paramount Health Services & Insurance TPA Private Ltd. (Paramount TPA) for Rs 311.8 crore on Monday.

The company announced in a stock exchange filing that its Board of Directors approved its subsidiary to enter into a share purchase agreement for acquiring a 100% equity stake in Paramount Health Services & Insurance TPA Private Ltd.

Paramount Health Services & Insurance TPA is owned by Fairfax Asia, Dr. Nayan Shah, and his family. This acquisition is one of the largest TPA deals in India, with the equity value expected to exceed Rs 400 crore.

The acquisition was formalized on 26th August 2024, through a share purchase agreement, pending approval from the IRDAI and the completion of customary closing formalities.

In FY24, Paramount TPA managed Rs 3,866 crore in total premiums, generating revenue of Rs 153 crore. It is the second-largest TPA by premiums in the group segment, adding significant value to Medi Assist’s portfolio.

Medi Assist’s market share will increase by 6% in the group segment and by 4% in the overall health insurance industry (group + retail) as of March 2024.

With the integration of Paramount TPA, the company’s market share in the group segment will rise to 36.6%, and its overall market share in the health insurance industry will increase to 23.6% for FY24.

This acquisition is expected to enhance the company’s operational efficiencies, including technology, team coordination, and network services, strengthening its position as a strategic partner to various insurers.

Dr. Nayan Shah of Paramount TPA highlighted the successful leadership and anticipated benefits of merging two leading TPAs to advance the goal of Insurance for All by 2047.

The transaction is expected to be completed within 4-6 months, by the end of FY25, pending regulatory approvals and closing conditions.

At 11:49 AM, the shares of Medi Assist Healthcare were trading 8.46% higher at Rs 609.30 on NSE.

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