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Home >Markets >Ipo >Rakesh Jhunjhunwala-backed health insurance company files for IPO. Details here

Chennai-based Star Health & Allied Insurance has filed for its initial public offering (IPO) papers with the market regulator Securities and Exchange Board of India (SEBI). Founded in 2006, India’s leading health insurance provider Star Health provides health, personal accident and overseas travel insurance.

The initial share sale will consist of a fresh issue of 2,000 crore and an offer for sale (OFS) of 60 million shares by its promoters and shareholders. The proceeds from the issue will be utilized towards augmentation of its capital base. Star health is backed by investor consortium including private equity firms Madison Capital and Westbridge Capital and Indian ace investor Rakesh Jhunjhunwala.

Around 75% of the shares would be reserved for qualified institutional buyers (QIBs) whereas 15% and 10% of the allocation will be reserved for non-institutional bidders (NIIs) and retail investors respectively.

Safecrop Investments India, Konark Trust, MMPL Trust, Apis Growth 6 Ltd, Mio Star are among the promoters and promoter group shareholders who will offload their stake.

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 are the book lead running managers to the issue. KFin Technologies has been appointed as the registrar for the issue.

The proposed IPO will make Star Health the fourth private sector insurance provider to list on Indian stock exchanges, following HDFC Life Insurance Co. Ltd, ICICI Prudential Life Insurance and ICICI Lombard General Insurance. Other listed insurance companies include SBI Life Insurance and state-owned The General Insurance Co. of India and New India Assurance Co. Ltd. As of October 2020, Star Health had a market share of 52% in the health insurance segment.

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