Star Health IPO opens on November 30: 10 key things to know before subscribing public issue

Asia's Tech News Daily

#IPO - New, #Star Health and Allied Insurance Company, #Star Health IPO

Star Health IPO

Rakesh Jhunjhunwala backed Star Health & Allied Insurance Company incorporated in 2006, will launch its maiden IPO in the coming week. It is one of the largest private health insurers in India with a market share of 15.8 percent in Fiscal 2021.

Here are 10 key things to know before subscribing to the public issue:

1) IPO Dates

The offer will open for subscription on November 30 and the last date for subscribing to the offer is set for December 02, 2021.

2) Price Band

The price band for the offer of Safecrop Investments India, Westbridge and ace investor Rakesh Jhunjhunwala-promoted company has been fixed at Rs 870-900 per share.

3) Offer Details

Star Health aims to mobilize Rs 7,249.18 through this IPO that comprises fresh issuance of shares worth Rs 2,000 crore and an offer for sale (OFS) of 5.83 crore equity shares by several shareholders.

Through the OFS, promotor Safecrop Investments India LLP will be offloading 3.07 crore shares. Promoter groups Konark Trust and MMPL Trust will be diluting 1.38 Lac Shares and 9.5K shares respectively.

Among other shareholders, APIS Growth 6 will sell 76,80,371 equity shares, MIO IV Star & MIO Star will offload 41,10,652 equity shares each, and University of Notre Dame DU LAC is going to sell 74,38,564 equity shares through OFS.

Further, ROC Capital Pty Limited will sell 25,09,099 equity shares, Venkatasamy Jagannathan 10 lakh equity shares, Sai Satish 5 lakh shares, and Berjis Minoo Desai will offload 1.44 lakh equity shares.

The offer includes a reservation of shares worth Rs 100 crore for the company’s employees. The anchor book, if any, may open for a day on November 29, a day before the opening of the IPO.

4) Objectives of Issue

Star Health is going to utilize net proceeds from fresh issues towards augmentation of its capital base and maintenance of solvency levels.

5) Lot Size and Investor’s Reserved Portion

Investors can bid for a minimum of 16 equity shares and in multiples of 16 shares thereafter. Retail investors can invest a minimum of Rs 14,400 for a single lot, and their maximum investment would be Rs 1,87,200 for 13 lots (208 equity shares).

6) Company Profile and Industry

Star Health with a market share of 15.8 percent is the largest private health insurer in the Indian health insurance market, as per a report from CRISIL Research. In FY21 and first half of FY22, it had total gross written premium (GWP) of Rs 9,348.95 crore and Rs 5,069.78 crore, respectively.

The company offers a range of flexible and comprehensive coverage options primarily for retail health, group health, personal accident and overseas travel. The retail health and group health accounted for 87.9 percent and 10.5 percent of its total GWP in FY21.

The retail health insurance will be a key growth driver for the health insurance industry in India especially after the COVID pandemic. The penetration of health insurance in India is still one of the lowest in the world and only 10 percent of the population has insurance policies outside of government plans. Also, higher health care costs will push people to go for health insurance going forward.

7) Financials

The company’s performance has been severely impacted by COVID-19 which has resulted into higher claims and deterioration of the solvency ratio for the company.

COVID related insurance claims almost doubled compared to the non COVID claims. Of the net paid claims for the company, 30 percent of the claims were due to the pandemic which increased further to 41 percent as the severity of pandemic increased with the second wave.

Consequently, the net incurred claims ratio increased from 64.2 percent and 65.8 percent in FY19 and FY20, respectively to 87 percent in FY21. For H1 FY22, this ratio stood at 88.2 percent as compared to 60.3 percent in H1 FY21.

Covid-19 pandemic was one of the key reasons for the company reporting an operating loss of Rs 1,071.2cr in FY21 as compared to a profit of Rs. 360.8cr in FY20. Its solvency ratio declined from 2.2x in FY21 to 1.52x in H1 FY21, (as against the regulatory requirement of 1.5x).

8) Key Risks

Any unfavorable change in the government policies and regulations can have an adverse impact on the company’s performance.

The company and industry as such continue to face risk from the Covid-19 pandemic and any further resurgence of cases in the country will bring more harm to the sector and the company may find it difficult to maintain the profitability.

“Unfavorable movement in the interest rates, stiff competition from other players and inability to manage hospital network and distribution channels”, are also few major risks faced by the company as per the brokerage firm, Choice Broking.

9) Promoters & Management

As of now, promoter and promoter group, including Rakesh Jhunjhunwala, Safecrop Investments India LLP and WestBridge AIF I currently hold 66.22 percent stake in the company and the remaining 33.78 percent shareholding is held by public shareholders.

Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala own 18.21 percent stake in the company, while Safecrop Investments India LLP is the major shareholder with 47.77 percent stake.

Post-IPO the promoter shareholding will come down to 58.30 percent while the public holding will increase from current 33.78-41.70 percent.

Management of the company

Venkatasamy Jagannathan is the Chairman and CEO of the company and has previously worked with United India Insurance Company in the capacity of chairman cum managing director.

Subbarayan Prakash is the Managing Director of the company. He has several years of experience as a surgeon in general surgery/traumatology.

Anand Shankar Roy is the Managing Director of the company and has previously worked with American Express Travel Related Services and ICICI Lombard General Insurance Co Ltd.

Sumir Chadha, Deepak Ramineedi and Utpal Hemendra Sheth are the Non-Executive Nominee Directors of the company.

Rohit Bhasin, Anisha Motwani, Berjis Minoo Desai, Kaarthikeyan Devarayapuram Ramasamy, Rajni Sekhri Sibal and Rajeev Krishna Murari Lal Agarwal are the Independent Directors of the company.

Key Managerial Personnel

Nilesh Kambli is the CFO of the company and has previously worked with Bharti AXA General Insurance Co Ltd, Citicorp Finance (I) Ltd and ICICI Lombard General Insurance Co Ltd. He joined the company as the CFO in 2020.

Aneesh Srivastava is the Chief Investment Officer of the company. He has previously worked with Bajaj Allianz Life Insurance Co Ltd, IDBI Fortis Life Insurance Co Ltd, India Advisory Partners Pvt Ltd and Sahara India.

Jayashree Sethuraman is the Company Secretary and Compliance Officer of the company.

10) GMP, Listing & Allotment Date

The grey market premium for the IPO is currently at Rs 10 per share as per IPO watch.

The share allotment will get finalised by December 7, 2021 and the unsuccessful investors will get refunds in their bank accounts by December 8 while successful investors will get shares in their demat accounts by December 9.

The trading in equity shares on the BSE and NSE will commence with effect from December 10.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related


Interview: JSW Energy will invest Rs 10,000 crore on capex every year for next 10 years: CEO

Prashant Jain, joint managing director and chief executive officer, JSW Energy Sajjan Jindal-led JSW Energy is in the process of reorganising its business into two entities—the parent which will house ... Read more »

Aircraft manufacturer Airbus wants to hire thousands of employees

Photo: ANP Aircraft manufacturer Airbus needs thousands of new employees. According to the group present in several countries, the aerospace industry is showing strong signs of recovery after the previous ... Read more »

Co-working firm Awfis plans to double office centres to 200 this year

Homegrown co-working space provider Awfis plans to double to 200 its office centres by adding another 60,000 seats by the end of 2022, founder and CEO Amit Ramani said on ... Read more »

What do rising bond yields to signal to the markets?

A note on the data: Interest rates on personal loans for all listed (BSE) public and private sector banks have been considered for data compilation. Banks for which data is ... Read more »

Burberry forecasts 35 per cent surge in annual profit as luxury fashion brands bounce back from pandemic

Burberry Group predicted a 35 per cent jump in profit for the current financial year, driven by a surge of online sales as luxury brands recovered from the pandemic. The ... Read more »

Budget 2022 expectations: Education sector seeks tax concession, low cost loans and expansion of 80C deductions

“For two years, the education sector is struggling in various ways. While the public institutions are looking for more budget allocations, private sector players in higher education need low-cost loans,” ... Read more »

Refrain from publishing paid news, violating RP Act during elections: PCI to print media

Representative Image Ahead of the upcoming Assembly polls in five states, the Press Council of India (PCI) asked the print media on Wednesday to follow the norms of journalistic conduct ... Read more »

Helsinki Shipyard Oy to build new icebreaker for Norilsk Nickel

The icebreaker will operate in the Yenisei River basin, the Yenisei Bay and the Kara Sea Read more »

India's oil production continues to slip, down 2% in December

Representative image India’s production of crude oil, which is refined to produce petrol and diesel, continued to decline in December 2021, with lower output from state-owned ONGC leading to a ... Read more »

After pressure from investors, ExxonMobil also sets itself climate target for 2050: ‘net zero' emissions

ExxonMobil is also the last of the major international oil companies to set a climate target for 2050. The American oil and gas company announced this on Tuesday. ExxonMobil’s climate ... Read more »

Optum center stage at UnitedHealth in 2021, driving revenue

MINNETONKA, Minn. — UnitedHealth Group posted strong fourth-quarter earnings led by double-digit growth in its Optum division. The largest U.S. health insurer posted fourth quarter net income on Wednesday of ... Read more »

Bulgarian president takes oath of office for second term

The Associated PressBulgaria’s President Rumen Radev arrives for an EU Summit at the European Council building in Brussels, Thursday, Dec. 16, 2021. European Union leaders meet for a one-day summit ... Read more »

BAM allowed to renovate famous building in London's Covent Garden

Photo: ANP Construction company BAM has been commissioned to carry out the redevelopment of the Space House in the London district of Covent Garden. Real estate company Seaforth has a ... Read more »

COVID-19 update | WHO counts 18 million virus cases last week as omicron slows

Representative image The number of new coronavirus cases globally rose by 20% last week to more than 18 million, marking a slowdown in the surge caused by the omicron variant’s ... Read more »

Delaying Nord Stream 2 hurts Europe's economic development, warns Kremlin

The construction of Nord Stream 2 was fully completed on September 10, 2021 Read more »

Taking Stock | Market ends lower for the second day; Sensex dives 656 points, Nifty below 18,000

The market continued to see profit-booking for the second consecutive day, with benchmark Sensex and Nifty falling a percent each on January 19 on weak global cues and high crude ... Read more », offering actor Rajinikanth's movie NFT, raises $1 million from Polygon, Kunal Shah

From left to right: Shaamil Karim, co-founder, Diginoor along with co-founder, Yash Rathod. Image: Diginoor. NFT marketplace, Diginoor launched with non-fungible tokens of south superstar Rajinikanth’s movies today announced $1 ... Read more »

Turkey announces launch of air service with Armenia starting February 2

On January 10, the Armenian Civil Aviation Committee gave its okay to operating the Yerevan-Istanbul-Yerevan route Read more »

IEA: tighter oil market due to limited impact omikron on oil demand

Photo: ANP The tightness in the global oil markets is greater than expected because the rapid advance of the omikron variant has had surprisingly little impact on the demand for ... Read more »

Cabinet sanctions Rs 973 crore to SBI for ex-gratia payment to borrowers

Representative image The government on Wednesday approved sanction of Rs 973.74 crore to State Bank of India (SBI) as reimbursement related to loan moratorium that was implemented in 2020 amid ... Read more »

CIABC urges govt to gradually reduce customs duties on British alcoholic beverages under proposed FTA

Representative image The apex body for liquor firms Confederation of Indian Alcoholic Beverage Companies has urged the government to gradually reduce customs duties on British alcoholic beverages under the proposed ... Read more »

Moldova offers paying January debt to Gazprom in stages, says Deputy PM Spinu

The actual risk of gas supplies being cut off exists, he also noted Read more »

'Wage-inflation spiral' warning

Read more »

Hitachi Energy bags order worth Rs 160 crore to support electrification of rail routes

Representative image Hitachi Energy India on Wednesday said it has bagged orders of over Rs 160 crore to provide key electric components to support the electrification of rail routes in ... Read more »

Luxury fashion and jewelry more popular than before corona

Last Christmas, Richemont even experienced its strongest sales spurt in at least ten years. Shortly after the outbreak of the pandemic, even fewer of his products were sold. Sales of ... Read more »

The Dutch Data Protection Authority does not have to act against Google

Photo: ANP The Dutch Data Protection Authority (AP) does not have to investigate Google itself. This was determined by the judge in a case brought by the Consumers’ Association. He ... Read more »

Tata Steel Q3 PAT seen up 155% YoY to Rs. 9,676 cr: ICICI Direct

Tata Steel now takes a more prudent approach to its capital allocation strategy. ICICI Direct has come out with its third quarter (October-December’ 21) earnings estimates for the Metals & Mining sector. The ... Read more »

Jindal Stainless Hisar Q3 PAT seen up 78% YoY to Rs. 482 cr: ICICI Direct

A JSLL Infra Stainless bench at the tourist information centre in Delhi. ICICI Direct has come out with its third quarter (October-December’ 21) earnings estimates for the Metals & Mining sector. The brokerage ... Read more »

SAIL Q3 PAT seen up 66% YoY to Rs. 2,125 cr: ICICI Direct

(Image: PTI) ICICI Direct has come out with its third quarter (October-December’ 21) earnings estimates for the Metals & Mining sector. The brokerage house expects SAIL to report net profit at Rs.2,125 crore up ... Read more »

Ratnamani Metals and Tube Q3 PAT seen up 64% YoY to Rs. 99 cr: ICICI Direct

ICICI Direct has come out with its third quarter (October-December’ 21) earnings estimates for the Metals & Mining sector. The brokerage house expects Ratnamani Metals and Tube to report net profit at Rs.99 ... Read more »

Graphite India Q3 PAT seen up 668% YoY to Rs. 177 cr: ICICI Direct

Graphite India  | In FY21 so far, the stock has risen 137 percent to Rs 301.05 as on January 25, 2021, from Rs 127.10 as on March 31, 2020. MFs increased their holding in each quarter of the ... Read more »

Moneycontrol Pro Panorama | Red-hot yield: What can calm the markets' nerves?

Dear Reader, The Panorama newsletter is sent to Moneycontrol Pro subscribers on market days. It offers easy access to stories published on Moneycontrol Pro and gives a little extra by ... Read more »

Paytm shares close record low; ends below Rs 1,000 for first time since listing

Paytm operator One 97 Communications Shares of Paytm owner One97 Communications Ltd on January 19 ended at a record low with shares closing below Rs 1,000 a piece for the ... Read more »

Jindal Stainless Q3 PAT seen up 140% YoY to Rs. 408 cr: ICICI Direct

Jindal Stainless (Hisar) | India Ratings assigned A/RWE to company’s credit facilities. ICICI Direct has come out with its third quarter (October-December’ 21) earnings estimates for the Metals & Mining sector. The brokerage ... Read more »

Luxury fashion and Cartier jewelry more popular than before corona

Photo: ANP Clothing and jewelry from luxury brands have become quite popular again in the past year. The Swiss , known for fashion from the Chloé brand and jewelry from ... Read more »

Behind the scenes - Why BharatPe's board decided Ashneer Grover had to take leave of absence and what it really means

Ashneer Grover, co-founder and managing director, BharatPe Ashneer Grover, co-founder and managing director of the $3 billion valued fintech BharatPe said he has taken a voluntary leave of absence till ... Read more »

Premium auto dealership chain Landmark files papers for Rs 762 crore IPO

Representative image Automobile dealership chain Landmark Cars Ltd has filed preliminary prospectus with capital markets regulator Sebi to raise Rs 762 crore through an initial public offering. The public issue ... Read more »

Dileep Sanghani elected as IFFCO chairman

IFFCO. (PC-Shutterstock) Dileep Sanghani has been elected as chairman of the Indian Farmers Fertiliser Cooperative (IFFCO). The election was held on Wednesday, IFFCO said in a statement. These elections were ... Read more »

Wetherspoons says Downing Street 'partygate' staff should have been allowed to go to the pub instead

The pub chain, led by Brexiteer and once -prominent Boris Johnson supporter Tim Martin, confirmed that it will report a half-year loss after Plan B restrictions hit trading over the Christmas period. Read more »

India's third COVID-19 wave likely to peak on January 23, daily cases to stay below 4 lakh: IIT Kanpur scientist

The third wave of the COVID-19 pandemic in India may peak on January 23 with daily cases likely to remain below the four lakh mark, according to a scientist at ... Read more »
On you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic