The ongoing initial public offering (IPO) rush will continue next week as Star Health and Allied Insurance Company, backed by ace investor Rakesh Jhunjhunwala, and Tega Industries will look to raise a total of over Rs 7,768 crore through their initial share sale.
The IPO of Star Health will open on November 30 and close on December 2, while that of Tega Industries will open on December 1 and conclude on December 3.
Till now in November, 10 firms have successfully concluded their IPOs. So far in 2021, as many as 51 companies have launched their IPOs to raise over Rs 1 lakh crore, according to analysis of data with exchanges.
The fund raising so far this year is way higher than Rs 26,611 crore collected by 15 companies through initial share sale in the entire 2020. Such impressive fund raising through IPOs was last seen in 2017 when firms mobilised Rs 67,147 crore through 36 IPOs.
Star Health has fixed a price band of Rs 870-900 per share for the IPO, which involves fresh issue of shares worth Rs 2,000 crore and an offer for sale (OFS) of 5.83 crore equity shares by several shareholders including promoters Safecrop Investments India LLP, KONARK Trust & MMPL Trust.
APIS Growth 6, MIO IV Star, MIO Star, University of Notre Dame DU LAC, ROC Capital Pty Limited, Venkatasamy Jagannathan, Sai Satish and Berjis Minoo Desai will also sell a part of their stake via the OFS.
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The company has allocated shares worth Rs 100 crore for its employees. The firm is looking to raise Rs 7,249.18 crore from the IPO at the upper price band.
The net proceeds from the issue will be utilised towards raising of company’s capital base and maintenance of solvency levels.
Star Health and Allied Insurance Company is among the largest private health insurers in India with a market share of 15.8 per cent in fiscal 2021. The company focuses on the retail health and group health segments which accounted for 89.3 per cent and 10.7 per cent of its total Gross Written Premium (GWP) in fiscal 2021, respectively.
Jhunjhunwala and his wife Rekha are the second-largest shareholders in the company with 18.21 per cent stake. Safecrop Investments India LLP is the biggest shareholder with 47.77 per cent stake.
Meanwhile, Tega Industries has fixed its price band at Rs 443-453 per share for its Rs 619-crore share sale. The IPO of the manufacturer of consumables for the mining industry is purely an OFS of 1,36,69,478 equity shares by promoters and a existing shareholder.
Promoters Madan Mohan Mohanka and Manish Mohanka will offload up to 33.14 lakh equity shares and Manish Mohanka will sell 6.63 lakh equity shares. In addition, Wagner, an affiliate of the US-based private equity firm TA Associates, will offload 96.92 lakh equity shares through the OFS.
Currently, promoter and promoter group hold 85.17 per cent stake in the company and Wagner owns 14.54 per cent shareholding.
(With PTI inputs)
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