Medi assist healthcare Services Limited has formally applied to stock exchanges for the reclassification of six entities from promoter and promoter group category to public category, following regulatory requirements under SEBI guidelines.

Regulatory Application Details

The company submitted applications to both BSE Limited and National Stock Exchange of India Limited on February 10, 2026, seeking no-objection certificates for the reclassification process. This move follows board approval granted on February 6, 2026, and builds upon earlier intimations dated January 9, 2026 and February 6, 2026.

Entities Proposed for Reclassification

The application covers six entities currently classified under promoter and promoter group categories:

Notably, all six entities currently hold no equity shares in the company, with NIL shareholding percentages across the board.

Compliance Framework

The reclassification application operates under Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulation provides the framework for promoter reclassification processes, ensuring transparency and proper disclosure to market participants.

Corporate Structure Impact

The proposed reclassification involves entities from the Bessemer investment group, including Bessemer India Capital Holdings II Ltd as a direct promoter, along with associated entities like Bessemer Health Capital LLC and Bessemer Venture Partners Trust. Additionally, technology companies Perfios Software Solutions Private Limited, Lentra AI Private Limited, and Global Apps Inc are included in the reclassification request.

The company has fulfilled its disclosure obligations by informing stock exchanges and maintaining transparency throughout the reclassification process, with Company Secretary Rashmi B V overseeing compliance requirements.

Medi assist healthcare Services Limited announced that Care Ratings Limited has reaffirmed the credit rating for banking facilities availed by its wholly owned subsidiary, Medi Assist Insurance TPA Private Limited. The rating action, communicated through a regulatory filing dated February 10, 2026, covers total credit facilities worth ₹246 crore.

Credit Rating Details

The rating agency maintained its assessment across different facility categories:

The reaffirmation reflects the subsidiary's strong market position and the demonstrated financial and operational support from its parent company. Care Ratings noted that the rating continues to derive strength from the established parentage of Medi Assist Healthcare Services Limited, which itself carries a 'CARE AA-; Stable/CARE A1+' rating.

Strategic Acquisition Strengthens Market Position

A key development influencing the rating assessment was the acquisition of 100% stake in Paramount Health Services & Insurance TPA Private Limited by Medi Assist Insurance TPA in July 2025. This acquisition, valued at ₹412 crore, further strengthens the company's market leadership in the third-party insurance administration industry.

The acquisition was initially funded through multiple sources:

Notably, by January 15, 2026, Medi Assist Insurance TPA had entirely repaid its bridge debt using internal accruals and unsecured loans from the parent company, following Medi Assist Healthcare's ₹198 crore preferential issue.

Business Performance and Market Leadership

The rating agency highlighted the subsidiary's strong market position, with approximately 21.3% market share in terms of premiums under management in the overall health industry as of September 30, 2025. The company demonstrated particularly strong performance in the group insurance segment with ~32.2% market share, compared to ~28.4% in the previous year.

Key operational metrics include:

The company's total operating income grew by 13% year-on-year to ₹667.89 crore in FY25, driven by 11% growth in premiums under management and 24% growth in government business.

Financial Performance and Outlook

Despite the positive rating reaffirmation, Care Ratings noted some challenges affecting profitability. The subsidiary's operating margin declined from above 20% in earlier years to approximately 14.71% and 13.67% in FY24 and FY25 respectively, primarily due to increased software-subscription charges from the parent company and higher employee costs.

In H1FY26, the operating margin further declined to ~10.43% compared to 16.51% in H1FY25, impacted by losses in the newly acquired Paramount TPA subsidiary and integration costs. However, the rating agency expects meaningful synergy benefits over time through enhanced operational efficiencies and improved scale, projecting margin recovery to 12-13% in the medium term.

The stable outlook reflects Care Ratings' expectation that the subsidiary will continue benefiting from its leadership position in the insurance TPA industry, established relationships with major insurance companies, and strong corporate client base. The company's liquidity position remains strong with nil outstanding external debt as of January 15, 2026, and healthy cash flow from operations.

Source: Exclusive content