two companies star health and affiliated insurance company and Tega Industries Will issue its initial public offering (IPO) this week to collectively raise Rs 7,868 crore.
Rakesh-Jhunjhunwala-backed private insurer Star Health’s three-day initial share sale will open on November 30 and end on December 2, while that of Tega Industries will be open for public subscription from December 1 to 3. The two IPOs come after 10 firms finished their initial public offerings in November. So far in 2021, 51 companies have launched IPOs to raise over Rs 1 lakh crore.
Star Health’s public offer comprises of fresh equity shares worth Rs 2,000 crore and Offer for Sale (OFS) of 58,324,225 equity shares by promoters and existing shareholders. Star Health has fixed a price band of Rs 870-900 per share and is at the upper end of the price band. Star Health plans to raise Rs 7,249 crore through offers at the upper end of the price band. Through the OFS, the company will make an offer of Rs 5,249 crore during the three-day bidding process.
in present, Safecrop Investments India LLP 47.77% stake, while Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala Holding 14.98% and 3.23% stake in the company respectively. The proceeds of the issue will be used to increase the capital base of the company.
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. With a market share of 15.8 percent, Star Health is the largest private health insurer in the Indian health insurance market. In FY21 and the first half of FY22, its total gross written premium (GWP) stood at Rs 9,348.95 crore and Rs 5,069.78 crore, respectively.
The document states, “The retail health market segment as a major growth driver for the overall health insurance industry in India after the pandemic due to low penetration of health insurance and high out-of-pocket expenditure for healthcare costs. Hoping to emerge.”
Investors can bid for a minimum of 16 equity shares and thereafter in multiples of 16 shares. Retail investors can invest a minimum of Rs 14,400 for a lot, and their maximum investment will be Rs 1,87,200 for 13 lots (208 equity shares).
Meanwhile, Tega Industries, a maker of consumables for the mining industry, has fixed a price band of Rs 443-453 per share for its initial share-sale of Rs 619 crore. IPO is purely an offer for sale of 1,36,69,478 equity shares by the promoters and existing shareholder. At present, the promoter and promoter group hold 85.17 per cent stake in the company and US-based Wagner holds 14.54 per cent.
As a part of the offer for sale, promoter Madan Mohan Mohanka will sell 33.14 lakh equity shares and Manish Mohanka Will sell 6.63 lakh equity shares. Wagner, an affiliate of US-based private equity firm TA Associates, will sell 96.92 lakh equity shares through an offer for sale.
The bidder of this public issue will be able to apply in lots and one lot will consist of 33 shares of the company. A bidder can apply for a maximum of 13 lots.
“Bidders are advised to keep an eye on Indian and global markets as the new Korana version has hit the global markets very badly. If NSE Nifty drops below 17,000 in next week’s session, then there will be a public issue. Will be available for subscription in a downturn in the market. In that case, 100 per cent OFS of the public issue could become a hindrance,” warned Avinash Gorakshakar, Head of Research at Profitmart Securities.
Both the offerings are set to test investor interest just like digital payments startups Paytm India lost over 30% in the first three days of trading after raising $2.5 billion in its biggest IPO ever. Many expected listings are now under close watch as investors question the valuation of the country’s startups.
The amount raised so far this year is much higher than the Rs 26,611 crore collected by 15 companies through initial share sales in 2020. 37,000 crore was raised through IPOs in October and November, with Paytm taking half of that amount. 2021 is already a record year for IPOs, trailing 2017 by a margin, and still a month away, with several mega issues in line.
Rakesh-Jhunjhunwala-backed private insurer Star Health’s three-day initial share sale will open on November 30 and end on December 2, while that of Tega Industries will be open for public subscription from December 1 to 3. The two IPOs come after 10 firms finished their initial public offerings in November. So far in 2021, 51 companies have launched IPOs to raise over Rs 1 lakh crore.
Star Health’s public offer comprises of fresh equity shares worth Rs 2,000 crore and Offer for Sale (OFS) of 58,324,225 equity shares by promoters and existing shareholders. Star Health has fixed a price band of Rs 870-900 per share and is at the upper end of the price band. Star Health plans to raise Rs 7,249 crore through offers at the upper end of the price band. Through the OFS, the company will make an offer of Rs 5,249 crore during the three-day bidding process.
in present, Safecrop Investments India LLP 47.77% stake, while Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala Holding 14.98% and 3.23% stake in the company respectively. The proceeds of the issue will be used to increase the capital base of the company.
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. With a market share of 15.8 percent, Star Health is the largest private health insurer in the Indian health insurance market. In FY21 and the first half of FY22, its total gross written premium (GWP) stood at Rs 9,348.95 crore and Rs 5,069.78 crore, respectively.
The document states, “The retail health market segment as a major growth driver for the overall health insurance industry in India after the pandemic due to low penetration of health insurance and high out-of-pocket expenditure for healthcare costs. Hoping to emerge.”
Investors can bid for a minimum of 16 equity shares and thereafter in multiples of 16 shares. Retail investors can invest a minimum of Rs 14,400 for a lot, and their maximum investment will be Rs 1,87,200 for 13 lots (208 equity shares).
Meanwhile, Tega Industries, a maker of consumables for the mining industry, has fixed a price band of Rs 443-453 per share for its initial share-sale of Rs 619 crore. IPO is purely an offer for sale of 1,36,69,478 equity shares by the promoters and existing shareholder. At present, the promoter and promoter group hold 85.17 per cent stake in the company and US-based Wagner holds 14.54 per cent.
As a part of the offer for sale, promoter Madan Mohan Mohanka will sell 33.14 lakh equity shares and Manish Mohanka Will sell 6.63 lakh equity shares. Wagner, an affiliate of US-based private equity firm TA Associates, will sell 96.92 lakh equity shares through an offer for sale.
The bidder of this public issue will be able to apply in lots and one lot will consist of 33 shares of the company. A bidder can apply for a maximum of 13 lots.
“Bidders are advised to keep an eye on Indian and global markets as the new Korana version has hit the global markets very badly. If NSE Nifty drops below 17,000 in next week’s session, then there will be a public issue. Will be available for subscription in a downturn in the market. In that case, 100 per cent OFS of the public issue could become a hindrance,” warned Avinash Gorakshakar, Head of Research at Profitmart Securities.
Both the offerings are set to test investor interest just like digital payments startups Paytm India lost over 30% in the first three days of trading after raising $2.5 billion in its biggest IPO ever. Many expected listings are now under close watch as investors question the valuation of the country’s startups.
The amount raised so far this year is much higher than the Rs 26,611 crore collected by 15 companies through initial share sales in 2020. 37,000 crore was raised through IPOs in October and November, with Paytm taking half of that amount. 2021 is already a record year for IPOs, trailing 2017 by a margin, and still a month away, with several mega issues in line.
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