Star Health IPO opens on November 30; sets the price range at 870-900 / share


Public offering includes a reservation of shares worth 100 crore for employees

Star Health and Allied Insurance Company announced on November 24 that it has set a price range of 870 to 900 yen per share for its initial public offering of 7,249 crore yen, which will open on November 30.

The three-day initial public offering (IPO) will close on December 2. The tender for lead investors will open on November 29, the company said.

The IPO includes a new issue of shares worth 2,000 crore and an offer to sell up to 58,324,225 shares by existing promoters and shareholders.

Those offering shares as part of the offer for sale are the promoter and group of promoters – Safecrop Investments India LLP, Konark Trust, MMPL Trust – and the existing investors – Apis Growth 6 Ltd., Mio IV Star, University of Notre Dame Du Lac, Mio Star, ROC Capital Pty Ltd, Venkatasamy Jagannathan, Sai Satish and Berjis Minoo Desai.

The public offering includes a reservation of shares worth 100 crore for employees.

At the high end of the price range, the initial share sale is expected to hit 7,249.18 crore.

The proceeds of the new issue would be used to increase the capital of the company.

Approximately 75% of the issue size was reserved for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors and the remaining 10% for Retail Investors.

Investors can bid on a minimum of 16 shares and in multiples thereof.

Star Health, the country’s leading private health insurer, is owned by a consortium of investors like Westbridge Capital and Rakesh Jhunjhunwala.

At present, SBI Life Insurance Company, HDFC Life Insurance Company, ICICI Prudential Life Insurance Company and ICICI Lombard General Insurance Company are the few listed insurance companies.

Kotak Mahindra Capital Company, Axis Capital, BofA Securities India, Citigroup Global Markets India, ICICI Securities, CLSA India, Credit Suisse Securities (India) Private Limited, Jefferies India, Ambit, DAM Capital Advisors and IIFL Securities are the investment bankers of the show.

The company’s shares will be listed on the BSE and the NSE.


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