Rakesh Jhunjhunwala Backed Star Health & Allied Insurance Initial Public Offering (IPO) Subscriptions will open next week on Tuesday, November 30, and the three-day share sale will end on December 2. The price band for its public offering has been set at: 870-900 per share.
Health insurer’s IPO includes a new issue of 2,000 crore and offer for sale (OFS) of 58.32 million shares by its existing promoters and shareholders.
As per market observers, Star Health shares are available at a premium of 130 in gray market today. The company plans to be listed on the major stock exchanges BSE and NSE on 10th December.
At present, Safecrop Investments India LLP holds 47.77% stake in the company, while Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala hold 14.98% and 3.23%, respectively. The proceeds from the issue will be deployed to enhance its capital base in FY 2022.
As per the norms and regulations of IRDAI, the insurer is required to maintain a minimum solvency ratio of 1.5. Its solvency ratio was 2.23x as of March 31.
Star Health is backed by a consortium of investors including private equity firms Madison Capital and Westbridge Capital and Indian stalwart investor Rakesh Jhunjhunwala. Established in 2006, Chennai-based Star Health offers health, personal accident and overseas travel insurance.
The proposed IPO will make Star Health the fourth private sector insurance provider to be listed on the Indian stock exchanges after HDFC Life Insurance Company Limited, ICICI Prudential Life Insurance and ICICI Lombard General Insurance.
Kotak Investment Banking, Axis Capital, BofA Securities India, Citigroup Global Markets India, ICICI Securities, CLSA India Pvt. Ltd., Credit Suisse Securities India, Jefferies India Pvt. Ltd., Ambit Pvt. Ltd., DAM Capital Advisors, IIFL Securities and SBI Capital Markets are the Book Lead Running Managers of the issue. Keffin Technologies has been appointed as the registrar of the issue.
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