Star Health files draft IPO prospectus with regulator

Mumbai: Start Health and Allied Insurance Company has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India for an initial public offering. The initial stake sale will consist of the issuance of fresh shares worth ₹2,000 crore and an offer for sale (OFS) of up to 6 crore shares by the promoters and existing shareholders of the company.

Among the promoters and promoter group shareholders, Safecrop Investments India, Trust, and MMPL Trust will offload their stakes.

Billionaire investor Rakesh Jhunjhunwala, one of three promoters of the company, holds 7.68 crore shares or about 14% stake in the company. Jhunjhunwala's wife Rekha owns 1.78 crore shares or a 3.3% stake.

Star Health, the private health insurer in India, had a market share of 15.8% in Indian health insurance market in FY21 The net proceeds from the new issue will be used to boost the company’s capital base.