A Jhunjhunwala bet that’s up 5x in 2.5 years

Mumbai: Billionaire investors Rekha and Rakesh Jhunjhunwala‘s investment in IPO-bound Star Health and Allied Insurance jumped almost fivefold in two-and-a-half years to ₹8,500 crore, based on the upper end of the price band.

Star Health is set to become the second-biggest stock in their portfolio of listed companies after Titan, with nearly 25% of the portfolio value once listed.

The Jhunjhunwalas invested ₹1,480 crore in the insurance firm in nine transactions since March 2019 at an average price of ₹156.28 a share, according to its IPO prospectus.

Rakesh Jhujhunwala owns a 4.87% stake in Titan, worth ₹10,288 crore based on Wednesday’s market price.

The ₹7,250 crore initial public offering of Star Health will open for subscription on November 30 at a price band of ₹870-900 per share. The IPO will be the third largest in 2021, after Paytm and Zomato raised ₹18,300 crore and ₹9,375 crore, respectively.

Bids can be made for a minimum of 16 shares and multiples of 16 thereafter. Some of the sellers in the offer are Safecrop Investments, Konark Trust, MMPL Trust, Apis Growth 6, Mio IV Star, University of Notre Dame Du Lac and ROC Capital. The Jhunjhunwalas are not selling any stake in the IPO.

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