Star Health and Allied Insurance Company Limited, owned by a consortium of investors including Rakesh Jhunjhunwala and Westbridge Capital, has fixed the price band of the share for its initial public offering 870-900 per share, Valuation of the company 49,796 crore at the top end of the band.
The share sale will open between November 30 and December 2. The company plans to list on the exchanges on December 10.
At the upper band of the price range, the firm plans to 72,49.18 crores.
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.
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. As of March 31, it had a solvency ratio of 2.23x. The proposed IPO would make Star Health the fourth private sector insurance provider to be listed on the Indian stock exchanges.
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 managing the share sale.
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