Rakesh Jhunjhunwala-backed Star Health and Allied Insurance Company’s initial public offer (IPO) will open for subscription on Tuesday, November 30. The IPO comprises fresh issuance of Rs 2,000 crore and an offer for sale (OFS) of equity worth Rs 5,249 crore (5.8 crore shares) by promoters existing shareholders. Chennai-based insurer Star Health has set a price band of Rs 870-900 for the IPO, which will conclude on Thursday, December 2. Star Health is backed by ace investor Rakesh Jhunjhunwala and PE firm Westbridge Capital.
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Here are key things to know about the Star Health IPO:
Important dates: The bidding process for the Star Health IPO will begin on November 30, and conclude on December 2.
IPO price band: Under the Star Health IPO, shares will be available for bidding in a price band of Rs 870-900.
Lot size: Shares will be available for bidding in multiples of 16 units. At the upper end of the price band, one lot of Star Health shares will cost bidders Rs 14,400.
Fund utilisation: The company will use the proceeds from the fresh issuance to augment its capital base.
Investor categories: Out of the total issue size, 75 percent is reserved for qualified institutional buyers (QIBs), 15 percent for non-institutional investors and 10 percent for retail investors. The public offer includes a reservation of shares worth Rs 100 crore for employees.
IPO listing date: Shares are likely to be listed on stock exchanges BSE and NSE on December 10.
OFS: Safecrop Investments India LLP, Konark Trust and MMPL Trust, and investors 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 will be selling shares under the OFS.
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Listed peers: Currently, SBI Life Insurance Company, HDFC Life Insurance Company, ICICI Prudential Life Insurance Company and ICICI Lombard General Insurance Company are among Star Health’s listed peers.
Company profile: Star Health and Allied Insurance Company is a major private health insurance company in the country. Its products target a variety of segments, including individuals, families, students, senior citizens and persons with existing medical conditions.
Financials: Star Health’s net loss stood at Rs 825.6 crore in the financial year 2020-21 as against a net profit of Rs 268 crore in the corresponding period a year ago. Its total income was at Rs 7,568.8 crore in FY21, up 36.3 percent on a year-on-year basis.Internet Explorer Channel Network