Star Health’s IPO is scheduled to open on November 30, 2021. The applications will be accepted for three working days until 2nd December 2021. Being a bookbuild kind of an issue, it is being launched at a price band of between Rs 870 and 900.
Today, the company disclosed details about the offering and said that they shall be raising capital by dispatching new shares of valuing Rs. 2,000 crore. Along with these, eleven existing stakeholders including Rakesh Jhunjhunwala and his wife Rekha Jjunjhunwala are planning to off-load their holding aggregating to 5.84 crore shares.
Following are the details of stakeholders’ off-loading of Star Health’s IPO shares:
|Safecorp Investments LLP||3,06,83,550 units|
|Konark Trust||1,37,810 units|
|MMPL Trust||9,510 units|
|APIS Growth||76,80,370 units|
|Mio Star sister firms||82,21,300 units|
|Notre Dame University||74,38,560 units|
|ROC Capital||29,09,100 units|
|Venkatswamy J||10,00,000 units|
|Sai Satish||5,00,000 units|
|Berjis Minoo Desai||1,44,000 units|
The portion of this upcoming IPO, worth Rs. 100 crore, shall be reserved for the company’s employees. And one day prior to Star Health’s IPO date, that is, on 29th November, the window for anchor investors might open for investment.
The funds collected from this offering will straightway go for increasing the capital and to maintain the level of financial competence.
About Star Health
Star Health and Allied is a leading private health insurer in India. It mainly focuses on the Retail Health market. The company offers a variety of flexible and comprehensive insurance solutions for various types of risks.
Star Health’s market share is around 15% in the insurance industry of India. Over 98% of the gross written premium of the company accounts from retail and group health insurance whereas the balance comes from personal accidents and abroad traveling related.
Star Health has reported a loss of Rs 825.60 crore for the semi-annual period that ended in September 2021, which is against a profit of around Rs 200 crore in the previous year’s 6 months.
In FY 2021-22, the company’s combined ratio increased to 114.8 percent due to exceptional accounting adjustments. The Covis-19 pandemic had a major impact on the same.
The combined ratio of insurance companies in the nation rose to 91.9 percent in the second half of the financial year. The increase was mainly due to COVID-19-related claims.
The Path Ahead
The retail health market in India is expected to grow at a robust rate in the coming years due to the low penetration of health insurance policies in the country. This is mainly due to the high out-of-pocket expenses associated with healthcare.
The insurance business will finalize on allotment status of the applicants by the 7th of December 2021 and is looking forward to listing on the exchanges on the 10th of December, 2021. Having said that, if the applicant does not get subscribed to Star Health’s IPO share, then the refund shall be initiated by the 8th, and shares for the investors who got allotted shall be credited with their holding on 9th December 2021.
What is Gross Written Premium?
Gross written premium refers to the amount that is received, less the number of cancellations and returns, as well as the assumption or written premium in connection with the cut-through quota share agreement or the pre-closing insurance agreement.
Where will the shares of Star Health be listed?
The shares of Star Health will be listed on BSE and NSE both on the 10th of December 2021.
What is Star Health’s IPO share price?
As the issue is based on a range of prices, the share price could range anywhere between Rs. 870 and Rs. 900 per unit.