Rakesh Jhunjhunwala-backed company files for IPO, DRHP will raise Rs 7,500 crore from the market

Star Health and Allied Insurance Co Ltd has applied to market regulator SEBI for raising capital through Initial Public Offering (IPO). As per the draft Red Herring Prospectus (DRHP), fresh shares worth Rs 2,000 crore will be issued under the IPO and 60,104,677 equity shares are proposed to be sold by the promoters and existing shareholders.

Promoters offering shares through sale offer include Safecrop Investments India LLP, Konark Trust, MMPL Trust and existing investors Apis Growth 6 Ltd, MOO Char Star, University of Notre Dame du Lac, Mio Star, ROC Capital Pvt Ltd, Venkatasamy Jagannathan , Sai Satish and Barjis Meenu Desai.

IPO may be worth Rs 7,500 crore

The proceeds from the fresh issue will be used to increase the capital base of the company. Private sector health insurer Star Health is owned by a consortium of investors like Westbridge Capital and Rakesh Jhunjhunwala. Collectively, the size of the IPO is expected to be up to ₹7,500 crore (about $1 billion).

was established in 2006

Established in 2006 as India’s first standalone health insurance provider, Star Health provides health, personal accident and overseas travel insurance. The Investor Consortium of Westbridge Capital, Rakesh Jhunjhunwala and Madison Capital had in August 2018 agreed to acquire over 90 per cent stake in Star Health from existing investors Star Health Investments Pvt.

The proposed IPO includes an offer for sale by Safecrop Investments India LLP up to 30.68 million shares, by Konark Trust up to 1.38 lakh shares, by MMPL Trust up to 9518 shares, by Apis Growth 6 Ltd up to 7.68 million shares, up to 4.11 sale will take place.

Up to 4.11 Million Shares by Mio IV Star, Up to 7.44 Million Shares by University of Notre Dame DU LAC, Up to 4.11 Million Shares by Mio Star, Up to 2.51 Million Shares by ROC Capital PTY Ltd, Up to 1.47 Million Shares by Venkatasamy Jagannathan, 1.8 Million Shares Up to 144,000 shares will be sold by Sai Satish and Berjis Minoo Desai.

The proposed IPO makes Star Health the fourth to be listed on the Indian stock exchanges after HDFC Life Insurance Co. Ltd, ICICI Prudential Life Insurance and ICICI Lombard General Insurance. Private sector insurance company.

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