tar Health Insurance IPO: Health insurance company Star Health has submitted documents with capital market regulator SEBI to raise funds through Initial Public Offer (IPO). The owners of the company include Rakesh Jhunjhunwala and Westbridge Capital.
The IPO will involve an offer for sale (OFS) of over 6 crore shares by promoters and existing shareholders, along with the issuance of fresh shares worth Rs 2,000 crore.
The company will use the funds from the IPO to strengthen its capital base.
With this public offer, Star Health will become the fourth private sector insurance company to be listed on the country’s stock exchanges.
The book lead running managers for the IPO include Kotak Investment Banking, Axis Capital, Citigroup Global Markets, ICICI Securities, Credit Suisse Securities, and SBI Capital Markets.
Star Health, the country’s largest private health insurance company, had a market share of 15.8 percent in the segment in the last financial year. Its total gross written premium (GWP) was around Rs 94 billion.
It offers a range of insurance options in the categories of Retail Health, Group Health, Personal Accident, and Overseas Travel. Retail health accounts for about 88 percent of its total business and group health more than 10 percent.
The company has sold around 70 lakh health insurance policies since its inception.