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The three-day initial share-sale of Star Health will open tomorrow, November 30 and conclude on December 2. The company has fixed a price band of 870-900 a share for its initial public offering (IPO) and at the upper end of the price band, the initial share sale is expected to fetch 7,249 crore.

Star Health's IPO comprises fresh issue of equity shares worth 2,000 crore and an offer for sale of up to 58,324,225 equity shares by promoters and existing shareholders.

As per market observers, Star Health shares premium (GMP) have fallen further to 10 in the grey market today. The company plans to list on leading stock exchanges BSE and NSE on December 10.

Proceeds from the fresh issue would be used to augment the company's capital base. Star Health, leading private health insurer in the country, is owned by a consortium of investors like Westbridge Capital and Rakesh Jhunjhunwala.

Currently, Safecrop Investments India LLP has a 47.77% stake, while Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala hold 14.98% and 3.23% stake, respectively, in the company. The proceeds from the issue will be deployed in the fiscal year 2022 towards the augmentation of its capital base.

Incorporated in 2006, Star Health and Allied Insurance Company Ltd (Star Health) is one of the largest private health insurers in India with a market share of 15.8% 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.

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.

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