Star Health and Allied Insurance Company Ltd IPO. Star Health and Allied Insurance Company Ltd IPO is Launching its IPO.What is Star Health and Allied Insurance Company Ltd IPO? How to use IPO? How to invest on IPO ? IPO Review – Is It Good Or Bad For Investment?

Star Health and Allied Insurance Company Ltd IPO. Star Health and Allied Insurance Company Ltd IPO is Launching its IPO.What is Star Health and Allied Insurance Company Ltd IPO? How to use IPO? How to invest on IPO ? IPO Review – Is It Good Or Bad For Investment?

Star Health and Allied Insurance Company Ltd IPO

ABOUT COMPANY:

Rakesh Jhunjhunwala-backed Star Health and Allied Insurance Company shares recorded strong demand in the market. Company is incorporated in 2006; it is one of the largest private health insurers in India with a market share of 15.8% in Fiscal 2021. The company primarily focuses on the retail health and group health segments which accounted for 89.3% and 10.7% respectively.

The company mainly distributes policies through individual agents and also includes corporate agent banks and other corporate agents. As of Sep 31, 2021, its network distribution includes 779 health insurance branches across 25 states and 5 union territories in India. Star Health has also built one of the largest health insurance hospital networks in India with more than 11,778 hospitals. This IPO comprises fresh issuance of shares worth Rs 2,000 crore and an offer-for-sale of 5.83 crore equity shares by selling shareholders, including promoters. There is a reservation of shares worth Rs 100 crore for the employees.

Competitive strengths:

  • Largest private health insurance company in India with leadership in the attractive retail health segment.
  • Largest network distribution in the health insurance industry.
  • Diversified product suite with a focus on innovation and specialized products.
  • Strong risk management with superior claims ratio and quality customer services.
  • Demonstrated track record of operating and financial performance.

Company Promoters:

 

Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala hold 14.98% and 3.23% stake are the company promoters.

Promoter Safecrop Investments India LLP will offload the maximum equity shares of over 3.06 crore through offer-for-sale.

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 their shares through OFS.

 

Company Financials:

 

Particulars For the year/period ended (₹ in Millions)
30-Sep-21 30-Sep-20
Total Assets 49,749.42 21,008.88
Total Revenue – 4,946.80 3,343.05
Profit After Tax – 3,802.69 1,992.87

 

Objectives:

 

The IPO aims to utilize the net proceed to augment the company’s capital base and insolvency level.

IPO Details

 

IPO Opening Date Nov 30, 2021
IPO Closing Date Dec 2, 2021
Issue Type Book Built Issue IPO
Face Value ₹10 per equity share
IPO Price ₹870 to ₹900 per equity share
Market Lot 16 Shares
Min Order Quantity 16 Shares
Listing At BSE, NSE
Issue Size [.] Eq Shares of ₹10
(aggregating up to ₹7,249.18 Cr)
Fresh Issue [.] Eq Shares of ₹10
(aggregating up to ₹2,000.00 Cr)
Offer for Sale 58,324,225 Eq Shares of ₹10
(aggregating up to ₹5,249.18 Cr)
Employee Discount 80

 

IPO Tentative Timetable

 

IPO Open Date Nov 30, 2021
IPO Close Date Dec 2, 2021
Basis of Allotment Date Dec 7, 2021
Initiation of Refunds Dec 8, 2021
Credit of Shares to Demat Account Dec 9, 2021
IPO Listing Date Dec 10, 2021

 

IPO Lot Size

 

Application Lots Shares Amount (Cut-off)
Minimum 1 16 ₹14,400
Maximum 13 208 ₹187,200

 

IPO Promoter Holding

 

Pre Issue Share Holding 66.22%

Post Issue Share Holding 58.42%

 

Conclusion

The retail health market segment is expected to emerge as a key growth driver for the overall health insurance industry in India after the COVID-19 crisis due to low penetration of health cover, high out-of-pocket expenses for healthcare.

 

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