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Star Health IPO, backed by Rakesh Jhunjhunwala, to open today: what you need to know

Star Health and Allied Insurance Company’s initial public offering (IPO), backed by Rakesh Jhunjhunwala, will be open for subscription on Tuesday, November 30. The IPO includes a new issue of Rs 2,000 crore and an offer to sell (OFS) shares worth Rs 5,249 crore (5.8 crore of shares) by existing shareholder promoters. Chennai-based insurer Star Health has set a price range of Rs 870-900 for the IPO, which will close on Thursday, December 2. Star Health is backed by leading investor Rakesh Jhunjhunwala and private equity firm Westbridge Capital.

Here are the key things to know about the Star Health IPO:

Important appointments

: The bidding process for Star Health’s IPO will begin on November 30 and end on December 2.

Lot size: The shares will be available for auction in multiples of 16 units. At the higher end of the price range, a bundle of Star Health shares will cost bidders Rs 14,400.

Use of funds: The company will use the proceeds of the new issue to increase its capital base.

Investor categories: Of the total size of the issue, 75% is reserved for qualified institutional buyers (QIB), 15% for non-institutional investors and 10% for retail investors. The public offering includes a reservation of shares worth Rs 100 crore for employees.

Stock exchange listing date: The shares are expected to be listed on the BSE and NSE stock exchanges on December 10.

OFS: Safecrop Investments India LLP, Konark Trust and MMPL Trust, and investors Apis Growth 6 Ltd, Mio IV Star, University of Notre Dame Du Lac, Mio Star, ROC Capital Pty Ltd, Venkatasamy Jagannathan, Sai Satish and Berjis Minoo Desai will sell shares under the OFS.

Listed peers: Currently SBI Life Insurance Company, HDFC Life Insurance Company, ICICI Prudential Life Insurance Company, and ICICI Lombard General Insurance Company are listed among Star Health’s rated peers.

Company Profile: Star Health and Allied Insurance Company is a leading private health insurance company in the country. Its products target a variety of segments, including individuals, families, students, the elderly, and people with existing health conditions.

Finance: Star Health’s net loss amounted to Rs 825.6 crore in fiscal year 2020-21, compared to net profit of Rs 268 crore in the corresponding period a year ago. Its total income was Rs 7,568.8 crore in FY21, up 36.3 percent year-on-year.

(Edited by : Ajay Vaishnav)

First publication: STI


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