The initial public offering of Star Health and Allied Insurance Company will be opening for subscription on Tuesday, 30 November 2021. This public issue will comprise freshly issued equity shares worth Rs. 2,000 crores along with a secondary issue. As part of the latter, promoters, as well as existing investors of Star Health, will be offloading 58,324,225 shares via an offer-for-sale.
In case you’re looking to apply for this IPO, it is vital that you look at some key details related to it.
Keep These Key Star Health IPO Details in Mind
Here are some essential details regarding the initial share sale of Star Health:
- Type of Issue: Book built issue
- Face Value Per Share: 10
- IPO Price Band: 870-900 per share equity share
- Minimum Order Quantity:16 equity shares
- Listing on:BSE as well as NSE
- IPO Closing Date:2 December 2021
Star Health aims to utilise the net proceeds of the IPO to augment its capital base and maintain the solvency levels.
Here’s a table showing what portion of the public issue has been reserved for different categories of investors:
|Investor Segment||Reserved Portion|
|Retail Individual Investors (RII)||10%|
|Non Institutional Investors (NII)||15%|
|Qualified Institutional Buyers (QIB)||75%|
Before you place the IPO order, it is essential that you consider certain aspects concerning this company. Let’s take a look at them.
A Quick Look at the Strengths of Star Health
Here are some strengths that provide the Chennai-based company with a competitive edge:
- This company is extremely efficient when it comes to risk management.
- Star Health has a superior claims ratio and offers high-quality customer services.
- It has a proven track record in terms of financial and operational performance.
- Star Health has a multifaceted product portfolio; it focuses on innovation and the development of specialised products.
- This company’s distribution network is the largest in the health insurance sector.
Vital Financial Highlights of Star Health
This table provides investors with an idea regarding the financial position of Star Health:
|Financial Year||Overall Assets (Rs.)||Total Revenue (Rs.)||Profit after Tax (Rs.)|
|2018-2019||16,426.35 million||2,262.54 million||1,282.26 million|
|2019-2020||18,967.69 million||4,619.61 million||2,680.02 million|
|2020-2021||18,967.69 million||(9,077.76 million)||(8,255.81 million)|
Taking the consistent financial performance and competitive strengths of Star Health into account, the company seems to be well placed in the industry. Nevertheless, before you decide to place Star Health IPO order, make sure to consider the weaknesses, opportunities and other aspects with regard to this company. Moreover, you might want to do a competitive analysis before you invest your savings.
If you decide on subscribing to this public issue, you can place the order conveniently by signing into your trading account via the Angel One app.
If you are yet to start your investment journey, you can begin by opening a DEMAT account with Angel One.
Frequently Asked Questions
- Which are some of the existing shareholders of the company that will take part in the OFS?
Mio IV Star, Apis Growth 6 Ltd and University of Notre Dame Du Lac are some of the existing investors that will be participating in the OFS.
- Who are the promoters of Star Health and Allied Insurance Company?
The promoters of Star Health are Rakesh Jhunjhunwala, Westbridge AIF I and Safecrop Investments India LLP.
- Which entities are merchant bankers to the Star Health IPO?
The lead managers to this upcoming initial share sale are ICICI Securities, Credit Suisse Securities (India) Private Limited, Kotak Mahindra Capital Company, DAM Capital Advisors and BofA Securities India.
- Which entity is the registrar to the public issue of Star Health?
The registrar to Star Health IPO is KFintech Private Limited.
- When will Star Health shares get listed on the bourses?
Star Health will make its stock market debut on 10 December 2021.