Star Health and Allied Insurance Company has filed a draft red herring prospectus (DRHP) with market regulator SEBI to raise funds via an initial public offering. According to sources, the IPO will comprise a fresh share issue worth approximately Rs. 2000 crores.
The listing will also consist of an OFS of around 6.01 crore equity shares by company shareholders and promoters. The final size of this OFS might change depending on company valuation.
India’s leading private health insurer, Star Health and Allied Insurance Co. Ltd., was founded in 2006. The Chennai-based company is also the country’s first standalone health insurance provider. It offers a wide range of coverage options catering to corporates, individuals, and families.
Here are a few insights into the company financials –
With a network of 10,870 hospitals, the firm reported a surge in the number of claims amidst the Covid-19 crisis. As of March 2021, the overall claims due to Covid-19 were worth Rs. 1,638.98 crores.
Here is a list of all details available on this potential IPO as of now:
WestBridge Capital, Safecrop Investments India LLP, and billionaire Rakesh Jhunjhunwala are the leading investors of Star Health Insurance.
Here is a table of contributors to the OFS in this IPO with their respective percentage of shares:
Promoters and shareholders | Equity shares in OFS |
MMPL Trust | 9,518 |
Konark Trust | 1.38 lakh |
Apis Growth 6 | 76.80 lakh |
Safecrop Investments India LLP | 3.06 crore |
Credit Suisse Securities (India), CLSA India, Ambit, Jefferies India, IIFL Securities, SBI Capital Markets, and DAM Capital Advisors will be managing this IPO’s fresh issue.
The Star Health Insurance IPO filing comes soon after the IPO listing of the notable Rakesh Jhunjhunwala-backed Nazara Technologies this year.
Star Health Insurance is following the footsteps of previously listed companies ICICI Lombard General Insurance, HDFC Life Insurance Co. Ltd, and ICICI Prudential Life Insurance to become the 4th private health insurer to go public.
This IPO listing will help the company enhance its solvency ratio. It plans to utilize proceeds to expand its capital base in FY22.
The IPO will be a means of partial exit for primary investors while enhancing business capital at the same time. The increasing demand for health insurance in times of medical emergency has helped and continues to help the firm grow and explore a public listing.
With the continuation of its current progress rate, potential investors will be able to benefit heavily from investment in this potential IPO.
Trilegal and Cyril Amarchand Mangaldas are the legal advisors of Star Health Insurance for this IPO.
The company has not released any statement regarding this matter yet.
The company has appointed KFin Technologies as the registrar of its upcoming IPO.
Axis Capital, Kotak Mahindra Capital Company, ICICI Securities, BofA Securities India, and Citigroup Global Markets India will be acting as the BRLMs for this IPO.
Star Health Insurance IPO shares will be listed on BSE and NSE.
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