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Star Health and Allied Insurance IPO to open on Nov 30. Key things to know
The Star Health and Allied Insurance IPO comprises a fresh issue of equity shares worth Rs 2,000 crore and an offer-for-sale of up to 58,324,225 equity shares by promoters and existing shareholders.
Star Health and Allied Insurance Company IPO will open on Tuesday, November 30, and conclude on December 2, the company backed by ace investor billionaire Rakesh Jhunjhunwala has announced.
Star Health and Allied Insurance has also said the bidding for anchor investors will open on November 29. On Wednesday, the company said it has fixed a price band of ₹870 and ₹900 a share for its ₹7,249-crore initial public offering.
The Star Health and Allied Insurance IPO comprises a fresh issue of equity shares worth Rs 2,000 crore and an offer-for-sale of up to 58,324,225 equity shares by promoters and existing shareholders.
Those offering shares through the offer-for-sale are promoter and promoter group—Safecrop Investments India LLP, Konark Trust, MMPL Trust—and 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 are the existing investors.
About 75 per cent of the Star Health and Allied Insurance issue size has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.
Investors can bid for a minimum of 16 equity shares and in multiples thereof.
The Star Health and Allied Insurance public offer includes a reservation of shares worth ₹100 crore for employees. The Star Health and Allied Insurance IPO is expected to fetch ₹7,249.18 crore at the upper end of the price band.
Proceeds from the fresh issue would be used to augment the company's capital base.
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 merchant bankers to the issue.
According to Reuters, Star Health and Allied Insurance shares are expected to be listed in the Mumbai market around December 10 and would make it the first insurance provider to hit public markets since 2017.
Star Health and Allied Insurance is owned by a consortium of investors like Westbridge Capital and Rakesh Jhunjhunwala.
SBI Life Insurance Company, HDFC Life Insurance Company, ICICI Prudential Life Insurance Company and ICICI Lombard General Insurance Company are the few insurance companies listed on the stock exchanges.
(With agency inputs)
