New Delhi: The initial public offering (IPO) of Star Health & Allied Insurance, backed by billionaire investor Rakesh Jhunjhunwala, kicks off on Tuesday (November 30). The IPO closes on December 2. Star Health plans to raise Rs 7,249.18 crore from the IPO, including Rs 5,249.18 crore worth of existing advertisers and shareholders’ offer (OFS) and Rs 2,000 crore new issue.
Under OFS, its promoter Mr Jhunjhunwala will not sell his stake in the IPO. However, other advertisers such as Safecrop Investments India LLP will acquire 3.06 crore shares and Konark Trust 1.37 lakh shares.
MMPL Foundation, APIS Development 6, MIO IV Star, University of Notre Dame, MIO Star, Venkatasamy Jagannathan, Sai Satish and Pergis Minu Desai are also partners in the IPO.
The company has raised Rs. It plans to sell the shares at a price of 870-900 and a retail investor can bid for a minimum of 16 shares up to a maximum of 13 lots. At higher prices, a Star Health stock would be worth Rs 14,400.
Gray market price:
According to market participants, the gray market is trading at Rs. 30 was premium.
The purpose of the IPO is to use the net income to increase the company’s capital base and bankruptcy status.
Star Health & Allied Insurance is one of the largest private health insurance companies in India with a market share of 15.8% in FY21.
The company primarily focuses on the retail healthcare segment. It offers flexible and comprehensive coverage options for retail health, group health, personal accident and overseas travel, up 87.9 percent, 10.5 percent, 1.6 percent and 0.01 percent, respectively.
Leading IPO Managers of Ambit Private, Axis Capital, BofA Securities, Citigroup Global Markets India, CLSA India, Credit Suisse Securities, DAM Capital Advisors, ICICI Securities, IIFL Securities, Jefferies India, Kotak Mahindra Capital Company and SBI Capital Markets. ; When KFintech is the registrar for the issue.