Medi Assist Healthcare Services Limited has approved the amalgamation of Paramount Health Services & Insurance TPA Private Limited (Paramount TPA) into Medi Assist Insurance TPA Private Limited (MAITPA). Both companies are wholly owned subsidiaries of Medi Assist Healthcare Services, with Paramount TPA being a step-down subsidiary and MAITPA a direct subsidiary.
The merger was approved on December 29, 2025, and is aimed at simplifying the group’s structure while improving operational efficiency.
Same Business, Single Platform
Both Paramount TPA and MAITPA operate in the health insurance administration space, providing Third-Party Administrator (TPA) services to insurance companies. Since both entities are engaged in identical business activities, combining them into a single entity allows for better alignment and smoother operations.
Financial Size of the Companies
As of March 31, 2025, the two companies reported the following financials:
Medi Assist Insurance TPA (MAITPA)
Turnover: ₹6,678.85 million
Net Worth: ₹3,569.70 million
Paramount TPA
Turnover: ₹1,785.70 million
Net Worth: ₹993.46 million
The merger will bring together these financial resources under one entity.
Why This Merger Makes Strategic Sense
Operational Synergies
The amalgamation allows MAITPA to gain seamless access to Paramount TPA’s assets, including its licenses and intangible assets, without maintaining two separate companies.
Cost Savings
By consolidating common functions such as human resources, finance, legal, and technology, the company expects to reduce duplication and lower administrative and operational costs.
Simpler Corporate Structure
The merger reduces the number of legal entities within the group, helping streamline compliance requirements and improve governance efficiency.
Better Cash Flow Utilisation
With a single entity, the combined business will have unrestricted access to consolidated cash flows, enabling more effective funding of future growth initiatives.
No Cash Involved in the Transaction
There is no cash consideration involved in this amalgamation. Since Paramount TPA is already a wholly owned subsidiary of MAITPA, its entire share capital will be cancelled and extinguished once the scheme becomes effective.
No Impact on Shareholding of Medi Assist Healthcare
The listed parent company, Medi Assist Healthcare Services Limited, is not a direct party to the merger. As a result, its shareholding pattern remains unchanged, ensuring no dilution or impact on existing shareholders.
Regulatory Approval
The amalgamation has been approved under Section 233 of the Companies Act, 2013. While the transaction qualifies as a related party transaction, it is exempt from certain regulatory restrictions due to the wholly owned subsidiary structure.