Rakesh Jhunjhunwala owned Star Health Insurance IPO to open Nov 30; check issue size, price, other details

Rakesh Jhunjhunwala will not be selling his 14.98% stake in Star Health and Allied Insurance.

Rakesh Jhunjhunwala backed Star Health and Allied Insurance Company’s Rs 7,249 crore IPO will hit Dalal Street on November 30 next week. The company, on Wednesday, announced that it has fixed the price band at Rs 870-900 per share. The IPO will be a mix of a fresh issue of equity shares and an offer for sale (OFS) by existing shareholders of the company. Star Health and Allied Insurance company is owned by a consortium of investors including Safecrop Investments India LLP, WestBridge AIF I, and big bull Rakesh Jhunjhunwala. The issue will close on December 2.

According to the RHP filed by the company, the IPO will include a fresh issue of equity shares worth Rs 2,000 crore and an offer for sale (OFS) by existing shareholders of the company worth Rs 5,249 crore on the upper end of the price band. From the promoter and promoter group, Safecrop Investments India LLP, Konark Trust, MMPL Trust are looking to trim their stake in the company while other investors selling stake include Apis Growth 6 Ltd, Mio IV Star, University of Notre Dame Du Lac, Mio Star, ROC Capital Pty Ltd, Venkatasamy Jagannathan, Sai Satish and Berjis Minoo Desai. Rakesh Jhunjhunwala will not be selling his 14.98% stake in Star Health and Allied Insurance. 

Star Health and Allied Insurance IPO will have a Rs 100 crore reservation for employees of the company. Meanwhile, 75% of the issue is reserved for Qualified Institutional Buyers (QIB). 15% of the issue is reserved for non-institutional investors (NII) and the remaining 10% for retail investors. Investors can bid for a minimum of 16 equity shares and in multiples thereof. From the fund raised through the fresh issue of equity, the company plans to augment its capital base.

In the previous financial year, the company posted a net loff of Rs 825 crore, against a net profit of Rs 268 crore in the year-ago period. During the July-September quarter, the company’s net loss stood at Rs 380 crore, against a net profit of Rs 199 crore in the same period last year. Upon successful completion of the IPO, Star Health and Allied Insurance will join the likes of HDFC Life Insurance Company, ICICI Prudential Life Insurance Company, SBI Life Insurance, and ICICI Lombard General Insurance Company on the stock exchanges. The equity shares of the company will be listed on the BSE and NSE