Rakesh Jhunjhunwala-Backed Star Health Seeks SEBI Nod For IPO

Chennai-based Star Health and Allied Insurance Co. has sought the market regulator’s approval for an initial public offer.

The Rakesh Jhunjhunwala-backed health insurer aims to raise as much as Rs 2,000 crore via fresh issue, while founders and investors will sell as many as 6.01 crore shares through an offer-for-sale, according to its draft red herring prospectus filed with the Securities and Exchange Board of India.

Founder Safecrop Investments India plans to sell up to 3.07 crore shares in the IPO, the draft prospectus showed. Other selling shareholders include:

• APIS Growth 6 Ltd. offloading up to 76.8 lakh shares.

• MIO IV Star offloading 41.1 lakh shares.

• University of Notre Dame DU LAC offloading 74.4 lakh shares.

• MIO Star offloading 41.1 lakh shares.

• ROC Capital Pty Ltd. offloading 25.1 lakh shares.

Billionaire investor Rakesh Jhunjhunwala owns 14%, or 7.68 crore shares in the company, while his wife Rekha Jhunjhunwala holds 3.26%, or 1.79 crore shares.

Kotak Mahindra Capital, Axis Capital, BofA Securities India, Citigroup Global and ICICI Securities are global coordinators and lead managers to the sale. CLSA India, Credit Suisse Securities, Jefferies India, Ambit, DAM Capital, IIFL Securities and SBI Capital Markets are co-book running lead managers.