Star Health and Allied Insurance company that is backed by Rakesh Jhunjhunwala is ready to launch its first public offer on 30 November 2021. The offer is scheduled to close on December 2. The details regarding the Star Health IPO are set to release on November 24. Let us have a look at the Star Health IPO GMP, price band, key details that you need to know. This is one of the most anticipated upcoming IPOs.
Star Health IPO: Details
The Star Health IPO comprises a fresh issue of shares. Star Health IPO valuation is worth Rs 2,000 crore and an offer for sale of up to 5,83,24,225 equity shares by 11 selling shareholders. The Star Health share price is ₹870-900 per share.
It is being notified that Promoter Safecrap Investments India LLP will unload 3,06,83,553 equity shares through an offer for sale, and KONARK Trust & MMPL Trust, which are sections of the promoter group, will sell 9,518 shares and 1,37,816 equity shares, respectively through OFS.
Among other stockholders, MIO Star and MIO IV Star will offload 41,10,652 equity shares each, APIS Growth 6 is set to sell 76,80,371 equity shares, and the University of Notre Dame DU LAC is ready to sell 74,38,564 equity shares via OFS.
Additionally, Venkatasamy Jagannathan 10 lakh equity shares, ROC Capital Pty Limited is said to sell 25,09,099 equity shares, Berjis Minoo Desai will offload 1.44 lakh equity shares, and Sai Satish 5 lakh shares.
The offer has a reservation of shares that is worth Rs 100 crore for the employees of the company. If there is any anchor book, it may open for a single day on November 29, which is the day before the opening of the Initial Public Opening.
The upcoming Star Health IPO will help you in making a firm decision.
About The Company And Its Present Market Condition
Star Health is going to use net proceeds from the fresh issue for the purpose of augmentation of its capital base and sustenance of solvency levels.
Star Health asserted to be the biggest private health insurer in this country that had a market share of 15.8 per cent in the Indian health insurance sector in Financial Year 21, according to CRISIL Research. In Financial Year 21 and the first half of FY22, it received a total GWP (gross written premium) of Rs 5,069.78 crore and Rs 9,348.95 crore, respectively.
The company provides an array of comprehensive and flexible coverage choices mainly for group health, retail health, overseas travel, and personal accident. The group health and retail health accounted for 10.5 percent and 87.9 percent respectively of its total GWP in FY21.
The trade health market sector is expected to evolve as a prime growth driver for the complete health insurance sector in India after the COVID-19 pandemic in India for low insight of health insurance, high out-of-pocket costs for healthcare costs, and since only 10 per cent of the total population has insurance policies beyond government plans, according to the prospectus.
Promoter group and Promoter, which include, Safecrop Investments India LLP, Rakesh Jhunjhunwala, and WestBridge AIF I presently hold 66.22 per cent stake in the entity, and the rest 33.78 per cent shareholding is held by the public shareholders.
Rakesh Jhunjhunwala himself and his wife Rekha Jhunjhunwala own an 18.21 per cent stake in the entity, while Safecrop Investments India LLP is among the important shareholders with a 47.77 per cent stake.
Star Health placed a loss of Rs 825.58 crore in FY21, versus a profit of Rs 268 crore in the last year. In the six months tenure that ended in September 2021, loss accounted at Rs 380.27 crore versus the profit of Rs 199.28 crore in the similar tenure of the previous fiscal.
In FY21, the composite ratio of the entity rose to 114.8 per cent mainly because of certain exceptional accounting calculations which are primarily related to our retreat from a reinsurance treaty in FY21, and the exceptional effect of the COVID-19 crisis in FY21, the entity said in its prospectus.
Along with that, the mixed ratio rose from 91.9 per cent in H2FY21, which was wedged by a fall in non-COVID-19 associated claims due to lockdowns and all other restrictions, as compared to 119.2 per cent in H2FY22, when the effect of COVID-19-related lockdowns and other constraints on non-COVID-19-related claims was less addressed and India faced a resurgence in the cases of COVID-19, in general in April and May 2021, the entity added.
The Bottom Line
The Star Health IPO date is from November 30 to December 2. For the Star Health IPO, the company will finalize the basis of allotment by 7 December 2021. The funds will be successfully refunded to unsuccessful investors by December 8 and the equity shares will be credited to the Demat accounts of eligible investors by December 9. Finally, all the equity shares will be listed on the NSE and BSE with effect from December 10. The above article gives all the latest Star Health IPO news.