Rakesh Jhunjhunwala's Star Health IPO
Star Health IPO: Ace investor Rakesh Jhunjhunwala-backed company Star Health and Allied Insurance Company will float their initial public offer or IPO on November 30, next week. The maiden public offer for Star Health will close after a three-day bidding process on December 2, next Thursday. If there is any, the anchor booking is likely to open on November 29, which is a day before the issue. The company has fixed a price band of Rs 870-900 for the offer; it said a day back. AS PER REPORTS, the IPO consists of a new case of Rs 2,000 crore and an offer for sale of 5.83 crore shares.
As per the latest reports, Star Health plans to raise Rs 7,249 crore through the offer at the upper end of the price band. Through the OFS part, the company will look to extend an offer size of Rs 5,249 crore during the three-day bidding process. The shareholders like promoters Safecrop Investments India LLP, KONARK Trust & MMPL Trust are set to offload their shares during the public offer's sale.
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 are also set to sell off some of their share parts in the company through the offer for sale.
The Star Health IPO is the third-largest IPO in India in the current year, with Paytm still being the largest IPO in the country. According to reports, the company has reserved shares worth Rs 100 crore for its employees.
Star Health IPO aims to utilise the net proceeds to augment the company's capital base and maintain the insolvency level.
Those who want to invest in the IPO can bid for a minimum of 16 equity shares and multiples of 16 shares after that. Retail investors can invest a minimum of Rs 14,400 for a single lot. The maximum investment for retail investors will be Rs 1,87,200 for 13 lots, equal to 208 equity shares.
On Wednesday, at the grey market, Star Health IPO was fetching a premium of Rs 150, which was 16 per cent up over the upper band of the issue price of Rs 900. The company plans to list the stock at the Bombay Stock Exchange (BSE) and the National Stock Exchange(NSE). This will be done on December 10, in all probability.
At present, Safecrop Investments India LLP has a 47.77 per cent stake in the company. On the other hand, ace investor Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala hold 14.98 per and 3.23 per cent stakes at Star Health.
The lead book-running managers include Kotak Investment Banking, Axis Capital, Bofa Securities India, Citigroup Global markets India, ICICI Securities, CLSA India Pvt. Ltd, Credit Suisse Securities India, Jefferies India Pvt. Ltd, Ambit Pvt. Ltd, DAM Capital Advisors, IIFL Securities and SBI Capital Markets.
Star Health and Allied Insurance Company Ltd was incorporated in 2006 and are a Chennai-based firm. It is one of India's largest private health insurers, with a market share of 15.8 per cent in Fiscal 2021. The company primarily focuses on the retail health market segment. It offers a range of flexible and comprehensive coverage options for retail health, group health, personal accident, and overseas travel, accounting for 87.9 per cent, 10.5 per cent, 1.6 per cent, and 0.01 per cent, respectively, of the total Gross Written Premium (GWP) in Fiscal 2021.
Data suggest Jhunjhunwala bought the insurer's shares between March 2019 and November 2021 in nine transactions at an average of Rs 155.28 a share. This implies that the value of Jhunjhunwala's investment in the insurance company grew 5.79 times since he started investing in it 32 months ago.
The issue comprises a fresh point of up to Rs 2,000 crore and an offer for sale of up to 58,324,225 shares. The quota for QIB is reserved at 75 per cent, NII at 15 per cent and retail investors at 10 per cent. The upper price band values the country's largest private health insurer at Rs 51,000 crore, or $7 billion.
Currently, promoters own 62.80 per cent of the company, while public shareholders own the rest. Safecrop Investments India holds 45.32 per cent, while billionaire investor Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala together own a 17.26 per cent stake.
For More information visit us at TAXAJ
Related Articles
MedPlus Health Services IPO – Company Overview
Let’s have a detailed review of the Company and analytics of the MedPlus Health Services IPO release date, IPO offer price, subscription, MedPlus Health Services Limited IPO allotment, grey market price, and other details like the Company’s ...Allotment and Transfer of Shares in Bangalore
Introduction: Shares in a company represent ownership interests, and the transfer and allotment of shares are fundamental aspects of corporate governance. In Bangalore, a burgeoning hub of entrepreneurial activity, understanding the nuances of share ...Prudent Corporate Advisory IPO Details
Let's have a detailed review of the Company and analytics of the Prudent Corporate Advisory IPO release date, IPO offer price, subscription, Prudent Corporate Advisory Services IPO allotment, grey market price, and other details like the Company's ...GST Applicability & Tax Rates on Health Care
GST for Health Care The 47th GST Council meeting has clarified that doctors’ services provided in the form of Assisted Reproductive Technology (ART) or In vitro fertilisation (IVF) will be exempt from GST, as they fall under the definition of ...All about Anand Rathi's Wealth
Anand Rathi Wealth IPO might hit the market on December 02, 2021, and close on December 06, 2021. Anand Rathi Wealth IPO to raise around ₹660 crores via IPO that comprises the new issue of ₹- crores and offer for sale up to 12,000,000 equity shares ...