Safecrop Investments India, Westbridge and ace investor Rakesh Jhunjhunwala-promoted Star Health and Allied Insurance Company has fixed a price band of Rs 870-900 per share for its maiden public offer.
The public issue will open for subscription on November 30 and it will close on December 2, 2021. The anchor book, if any, may open for investors for a day on November 29, a day before the issue opening.
The IPO consists of a fresh issuance 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 offload some of their shareholding in the company via OFS. The company has reserved shares worth Rs 100 crore for its employees.
The public issue will fetch Star Health Rs 7,249.18 crore at upper price band. It is the third largest IPO in issue size in current year 2021.
The net proceeds from fresh issue will be utilised towards augmentation of company’s capital base and maintenance of solvency levels.
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).
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Star Health offers a range of flexible and comprehensive coverage options primarily for retail health, group health, personal accident and overseas travel, claiming to be the largest private health insurer in India with a market share of 15.8 percent in the Indian health insurance market in FY21.
The retail health and group health segments contributed to 87.9 percent and 10.5 percent of its total gross written premium (GWP) in FY21.
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Currently, promoters including Rakesh Jhunjhunwala, Safecrop Investments India LLP and WestBridge AIF I have a 66.22 percent shareholding in the company. Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala combined is the second largest shareholder in the company with 18.21 percent stake, while Safecrop Investments India LLP is the biggest shareholder with 47.77 percent stake.
After closing the public issue, the share allotment will get finalised by December 7, 2021. The unsuccessful investors will get refunds in their bank accounts by December 8 and successful investors will get shares in their demat accounts by December 9.
The trading in equity shares will commence with effect from December 10.
The book running lead managers to the issue are Kotak Mahindra Capital Company, Axis Capital, BofA Securities India, Citigroup Global Markets India, ICICI Securities, CLSA India, Credit Suisse Securities (India), Jefferies India, Ambit, DAM Capital Advisors, IIFL Securities, and SBI Capital Markets.
