Star Health Insurance IPO

Star Health and Allied Insurance Co. Ltd. is the country’s first standalone insurance provider. The company extends health, overseas travel and personal accident insurance policies.

This insurance provider has been proactively catering to insurance policy requirements of families, individuals and corporates since 2006. Star Health Insurance has a longstanding relationship with multiple banks across India. It operates directly and also through a well-connected network of third-party agents and online channels.

Star Health Insurance IPO Objectives

- To augment its capital base
- To address general corporate purposes

Star Health Insurance IPO - Details

Star Health IPO comprises fresh issue worth Rs. 2000 crores and offer for sale of 60 million shares from its shareholders and promoters.

75% of this share IPO will be reserved for qualified institutional buyers. Similarly, 15% of shares will be reserved for the non-institutional bidders, and 10% of shares will be allocated to retail investors.

Opening Date

To be updated

Closing Date

To be updated

Price Band

To be updated

per equity share

Issue Size

₹ To be updated

Face Value

₹ To be updated

per equity share

Market Lot

To be updated

Opening Date

To be updated

Closing Date

To be updated

Price Band

To be updated

per equity share

Issue Size

₹ To be updated

Face Value

₹ To be updated

per equity share

Market Lot

To be updated

Listing at NSE, BSE

Star Health Insurance IPO Important Dates

IPO Open Date Yet to be announced
IPO Close Date Yet to be announced
Basis Of Allotment Date Yet to be announced
Initiation Of Refunds Yet to be announced
Credit Of Shares To
Demat ACcount
Yet to be announced
IPO Listing Date Yet to be announced
UPI Mandate Expiry Date Yet to be announced
Note: We will update the information here as soon as Star Health Insurance announces the IPO timeline.

Why should you invest in Star Health Insurance?

Here are a few reasons to subscribe to Star Health Insurance IPO –

- Star Health Insurance is a trusted name in the insurance segment. Its brand image and prominent presence continue to help it expand its market shares.
- This insurer has several upsides in terms of growth and revenue generation. Its diverse product offerings, coupled with the surge in demand for health insurance policies, serve as catalysts for future growth.
-The company has a strong financial standing that could only improve from this point. This offers upsides to investors in regards to steady and substantial revenue generation.

Regardless, a detailed SWOT analysis is important to ensure a fruitful investment. Investors should be cautious about the same and plan their IPO subscription accordingly.

Financial highlights

Financial Year Total Revenue (Rs. in thousands) Total Assets (Rs. in thousands) Profit After Tax (Rs. in thousands)
31 March 2020 Rs. 4543788 Rs. 21568866 Rs. 1834174
31 March 2019 Rs. 3095520 Rs. 17432520 Rs. 2633049

How to apply for Star Health Insurance IPO?

You can apply for the Star Health Insurance IPO in these ways:

UPI
Link your bank account to a reliable UPI ID and register it with your Angel One account. Proceed to book Star Health Insurance IPO shares using the ID, confirm the payment on the UPI app, and block the amount for allotment.

Demat Account

1. If you are already a client of Angel One, apply directly for Star Health Insurance IPO, click here.
2. If you’re a new investor Open DEMAT Account for free with Angel One to begin your investment journey.

Star Health Insurance – Noteworthy Highlights

Star Health Insurance occupied 52% of the market share in the health insurance segment in October 2020, making it one of the leaders in the space. In addition, this upcoming IPO makes Star Health the first pure-play and 4th insurance provider in the private sector to get listed on stock exchanges.

Some of the most prominent highlights of Star Health Insurance include :

- The company occupies 30% market share in the retail health insurance sector.

- It has an active network of over 9500 hospitals.

- Star Health Insurance has over 12800 employees.

- It has a robust network of 640 branch offices across India.

- Between the period of April 2020 and November 2020, the company sold nearly 43 lakh insurance policies.

Star Health Insurance IPO - SWOT Analysis

strengths

Strengths

  • Product variation: Star Health Insurance has a vast portfolio of products and services. The insurer offers health insurance policies, travel insurance covers and accident insurance policies. The variation in offering allows this insurer to capture a larger market share and cater to a diverse range of target customers.
  • Business growth: In the last couple of years, individuals are keener on getting insured. With a solid reputation in the insurance market segment and quality offerings, Star Health Insurance is in a better position to divert the current insurance trends in its favour.
Weaknesses

Weaknesses

  • Common offerings: Star Health Insurance offers coverage plans and policies that are not exactly unique. The common features, similar nature of offerings and stagnant innovation could weaken the company’s long-term prospects.
Opportunities

Opportunities

  • Awareness about financial planning: As more individuals become financially aware and want to account for financial liabilities independently, the demand for insurance policies is rising. By tapping into this demand and the growing awareness about the importance of health insurance, this company can expand its market presence.
  • Growth prospects: Strong financials and a greater market share can prove useful in the long-term if the company decides to expand its service offerings and area of expertise further.
Threats

Threats

  • Competition: Almost all insurance companies offer similar products and services. This means substitute products and offerings are readily available to potential customers. The rising competition in the market increases the fear of losing potential and existing customers to companies that cater to niche areas.
Strenghts Strengths
Weaknesses Weaknesses
Opportunities Opportunities
Threats Threats

Strengths

  • Product variation: Star Health Insurance has a vast portfolio of products and services. The insurer offers health insurance policies, travel insurance covers and accident insurance policies. The variation in offering allows this insurer to capture a larger market share and cater to a diverse range of target customers.
  • Business growth: In the last couple of years, individuals are keener on getting insured. With a solid reputation in the insurance market segment and quality offerings, Star Health Insurance is in a better position to divert the current insurance trends in its favour.

Weaknesses 

  • Common offerings: Star Health Insurance offers coverage plans and policies that are not exactly unique. The common features, similar nature of offerings and stagnant innovation could weaken the company’s long-term prospects.

Opportunities 

  • Awareness about financial planning: As more individuals become financially aware and want to account for financial liabilities independently, the demand for insurance policies is rising. By tapping into this demand and the growing awareness about the importance of health insurance, this company can expand its market presence.
  • Growth prospects: Strong financials and a greater market share can prove useful in the long-term if the company decides to expand its service offerings and area of expertise further.

Threats 

  • Competition: Almost all insurance companies offer similar products and services. This means substitute products and offerings are readily available to potential customers. The rising competition in the market increases the fear of losing potential and existing customers to companies that cater to niche areas.

Competitor Analysis: Market Peers

Star Health Insurance company is a market leader in the insurance space. Regardless, the company has more than one market peer with a strong market presence. Here are a few of such market peers.

Market Peers Revenue  
HDFC ERGO $1.1B
Royal Sundaram General Insurance $487.4M
MAX Bupa Health Insurance $168.6M
Apollo Munich $2.3M
Cigna Health Insurance $2M
Religare Health Insurance $4.7M
Trusted Tablets $1.2M

Star Health Insurance IPO FAQs

What is Star Health Insurance IPO?

Star Health Insurance IPO will comprise fresh share issue and new offer share issue. The company aims to go public to accelerate its growth and expansion plan.

When will Star Health Insurance IPO be open for subscription?

The company is yet to share IPO subscription details.

What is the minimum lot size that investors can subscribe to?

No information is released yet.

When is the Star Health Insurance IPO listing date?

We will update Star Health Insurance IPO listing date as soon the company releases its upcoming IPO details.

How will I receive shares?

You will receive the Star Health Insurance shares in your DEMAT account once the allotment process is completed.

What is the minimum order quantity for Star Health Insurance IPO?

The minimum lot size for this upcoming IPO is yet to be disclosed.

Who is the registrar for Star Health Insurance IPO?

KFin Technologies will be the registrar for this upcoming IPO.

Who are the legal advisors of Star Health Insurance IPO?

Trilegal and Cyril Amarchand Mangaldas are the legal advisors for this upcoming IPO.

Who are the promoters of Star Health Insurance?

The promoters of Star Health Insurance include Mio Star, Konark Trust, Apis Growth 6 Ltd, MMPL Trust and Safecrop Investments India.

Who is the lead manager of Star Health Insurance IPO?

The lead managers of Star Health Insurance include Credit Suisse Securities India, BofA Securities India, ICICI Securities, IIFL Securities, Axis Capital, CLSA India Pvt. Ltd, Citigroup Global markets India, Jefferies India Pvt. Ltd, SBI Capital Markets, DAM Capital Advisors, Ambit Pvt. Ltd, and Kotak Investment Banking.

Who are the investors of Star Health Insurance?

Westbridge Capital, Rakesh Jhunjhunwala and Madison Capital are among its private equity investors.

Which investor categories are allowed to participate in Star Health Insurance IPO?

Qualified institutional buyers, non-institutional bidders and retail individual investors are allowed to participate in Star Health Insurance IPO.

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