Star Health IPO: Ace investor Rakesh Jhunjhunwala-backed company, Star Health and Allied Insurance Company is set to float its initial public offer or IPO on November 30, which is next week. The maiden public offer for Star Health will close after a three-day bidding process on December 2, next Thursday. The anchor booking, if there is any, is likely to open on November 29, which is a day before the issue. The company has fixed a price band of Rs 870-900 for the offer, it said a day back. The IPO consists fresh issue of Rs 2,000 crore and an offer for sale of 5.83 crore shares, as per reports.
Star Health plans to raise Rs 7,249 crore through the offer at the upper end of the price band, as per latest reports. The company through the OFS part will look to raise an offer size of Rs 5,249 crore during the three-day bidding process. The shareholders like promoters Safecrop Investments India LLP, KONARK Trust & MMPL Trust are set to offload their shares during the offer for sale of the public offer.
APIS Growth 6, MIO IV Star, MIO Star, University of Notre Dame DU LAC, ROC Capital Pty Limited, Venkatasamy Jagannathan, Sai Satish and Berjis Minoo Desai are also set to sell off some of their share parts in the company through the offer for sale.
The Star Health IPO is the third largest IPO in India in the current year, with Paytm still being the largest IPO in the country. According to reports, the company has reserved shares worth Rs 100 crore for its employees.
Star Health IPO aims to utilise the net proceeds to augment the company’s capital base and maintain insolvency level of the company.
Those who want to invest in the IPO can bid for a minimum of 16 equity shares and in multiples of 16 shares thereafter. Retail investors can invest a minimum of Rs 14,400 for a single lot. The maximum investment for retail investors will be Rs 1,87,200 for 13 lots. This is equal to 208 equity shares.
At the grey market on Wednesday, Star Health IPO was fetching a premium of Rs 150, which was 16 per cent up over the upper band of the issue price of Rs 900. The company plans to list the stock at the Bombay Stock Exchange (BSE) and the National Stock Exchange(NSE). This will be done on December 10, in all probability.
At present, Safecrop Investments India LLP has a 47.77 per cent stake to the company. On the other hand, ace investor Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala hold 14.98 per and 3.23 per cent stake at Star Health respectively.
The lead book running managers to the issue include 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.
Star Health and Allied Insurance Company Ltd was incorporated in 2006, and is a Chennai-based firm. It is one of the largest private health insurers in India with a market share of 15.8 per cent in Fiscal 2021. The company primarily focuses on the retail health market segment. It offers a range of flexible and comprehensive coverage options for retail health, group health, personal accident, and overseas travel, accounting for 87.9 per cent, 10.5 per cent, 1.6 per cent, and 0.01 per cent, respectively, of the total Gross Written Premium (GWP) in Fiscal 2021.