Star Health’s Rs 7,500 cr IPO likely to open by Nov-end

Mumbai: Star Health and Allied Insurance Company plans to launch its Rs 7,500-crore initial public offering during the last week of November, according to investment banking sources. The IPO will be the third-largest in 2021 after Paytm and , which raised Rs 18,300 crore and Rs 9,375 crore, respectively.

The company and bankers are inclined to open the issue on November 30, but they will decide depending on the market conditions, the sources said.

The issue could be priced at around Rs 900 a share which would value the country’s largest private health insurer at around Rs 51,000 crore, or $7billion, said one of the people quoted above.

The market capitalization of the recently-listed PB Fintech, owner of India’s largest digital insurance marketplace Policybazaar, is Rs 59,824 crore.

The IPO of Rakesh Jhunjhunwala-backed Star Health comprises a fresh issue of Rs 2,000 crore and an offer for sale of up to Rs 5,500 crore by existing shareholders, including promoters. The net proceeds are proposed to be deployed towards augmentation of the company’s capital base. The sellers in the offer for sale include the three promoters, Safecrop Investments, Konark Trust, and MMPL Trust. Among non-promoters, Apis Growth, University of Notre Dame and MIO Star, among others too will cut their stakes.

Currently, promoters own 62.80% of the company, while public shareholders own the rest.

Safecrop Investments India LLP holds 45.32% in the company, while billionaire investor Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala together own a 17.26% stake.

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