Star Health IPO – Company Information
As per CRISIL reports, Star Health is the largest private health insurer in the Indian health insurance sector with a 15.5% market share. In FY20-21 it had a total gross written premium (GWP) of Rs 9,348.95 crores with a split of 87.9% in retail health and 10.5% in group health GWP. In the current global health scenario, which is reflected in the Indian insurance sector as well, retail health is expected to continue being the key growth driver which falls favourably for the company. Star Health boasts of a pan-India network which includes 779 health insurance branches across 25 states and 5 union territories. It has also built one of the largest health insurance hospital networks in India with more than 11,778 hospitals.
Star Health IPO – Company Financials
The decision to invest in any company should rely on facts and figures depicting the company’s financial performance and stability. Here is a quick Year-on-Year comparison of Star Health’s financial health based on this year and last year’s figures.
|(₹ in Millions)||30-Sep-21||30-Sep-20||31-Mar-21||31-Mar-20|
|Total Revenue||– 4,946.80||3,343.05||– 9,077.76||4,619.61|
|Profit After Tax||– 3,802.69||1,992.87||– 8,255.81||2,680.02|
Star Health IPO – Offer Details
As per the information released through its Draft Red Herring Prospectus (DRHP) filed with SEBI, Star Health aims to raise around Rs. 7,250 crores with its IPO out of which approximately Rs. 5,000 crores will be offered as fresh issue. The objective declared is to utilize the net proceeds for managing insolvency levels and augment the existing capital base. It will be utilized to widen the current network and bring in new offerings.
Approximately, shares worth Rs 100 crores have been reserved for Star Health employees. Apart from this, 75% of the shares has been reserved for qualified institutional buyers, while non institutional buyers have been allotted 15% shares. The remaining 10 per cent is reserved for retail buyers
Star Health IPO – Important Information (Lot Size and Price)
The IPO is being launched on 30th November 2021 and will close on 2nd December 2021. The price band is set at Rs. 870 – Rs. 900 per equity share with a minimum order quantity of 16 shares. This translates to Rs. 14,400 and the minimum cut-off amount to be invested. The maximum lots one can apply for is 13, which means a total of 208 shares per investor with an approximate price of Rs. 187,000.
Star Health IPO – Competitive Strengths
Being the largest private health insurance company in the nation, Star Health IPO is attracting a lot of attention. The company has a clear leadership in the retail health segment and the largest private network distribution in the health insurance industry. It offers diversified products and brings in a high level of innovation and technology enablers to its offerings. The company is noted for its trong risk management processes and has a high claims ratio which has resulted in a favorable rise in the customer base.
Star Health IPO – Lead Managers
Some of the leading financial institutions have been engaged as process managers for this IPO, including:
- SBI Capital Markets Limited
- Credit Suisse Securities (India) Private Limited
- Ambit Private Limited
- BofA Securities India Limited
- Axis Capital Limited
- IIFL Securities Ltd
- Citigroup Global Markets India Private Limited
- CLSA India Private Limited
- ICICI Securities Limited
- DAM Capital Advisors Ltd (Formerly IDFC Securities Ltd)
- Kotak Mahindra Capital Company Limited
- Jefferies India Private Limited
Frequently Asked Questions
When is the Star Health IPO being listed?
With the IPO launch on 30th Nov, the listing will take place on 10th Dec 2021.
Who are the main company promoters?
The company promoters for this IPO include: Safecrop Investments India LLP, Westbridge AIF I and Rakesh Jhunjhunwala
What is Grey Market Premium (GMP) for Star Health IPO?
As per IPO Watch, Star Health IPO was at a GMP of Rs 10 over the IPO price band ceiling of Rs 900.