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Star Health and Allied Insurance Co. Ltd, owned by a consortium of investors, including Rakesh Jhunjhunwala and Westbridge Capital, has set the share’s price band for its initial public offering at 870-900 per share, valuing the company at 49,796 crore at the top end of the band.

The share sale will open between 30 November and 2 December. The company plans to list on exchanges on 10 December.

At the upper band of the price range, the firm plans to raise as much as 72,49.18 crore.

The health insurer’s IPO consists of a fresh issue of 2,000 crore and an offer for sale (OFS) of up to 58.32 million shares by its existing promoters and shareholders.

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. According to IRDAI norms and regulations, the insurer is required to maintain a minimum solvency ratio of 1.5. As of 31 March, its solvency ratio was 2.23x.The proposed IPO will make Star Health the fourth private sector insurance provider to list on Indian stock exchanges.

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 managing the share sale.

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