Star Health Files Draft Papers For $1 Billion IPO

• ByAyushi Ray     |    July 23, 2021

Star Health and Allied Insurance Co. Ltd, backed by a group of investors including Rakesh Jhunjhunwala and Westbridge Capital, will aim to raise as much as ₹7,500 crore through an initial public offering (IPO), a close source informed media. Star Health on Thursday filed a draft prospectus with the Securities Exchange Board of India (Sebi) for the share sale. A successful IPO will make the health insurer the fourth private sector insurance firm to list on the domestic stock exchanges. The IPO will comprise a fresh issue of ₹2,000 crore and an offer for sale (OFS) of 60.10 million shares by existing shareholders. Kotak Investment Banking, Axis Capital, Bofa Securities India, ICICI Securities, Ambit Pvt. Ltd, DAM Capital Advisors and others are advisors to the IPO. 

After being founded in 2006, Star Health was the only company that provided health insurance since the very beginning. Not only health they also cover any major or minor accidents, travel insurances hence providing it’s customers with peace of mind.  It has been the number 1 presence for many people when it comes to health insurance, as a consequence of its A1  service. The investor consortium of Westbridge Capital, Rakesh Jhunjunwala and Madison Capital, had in August 2018 agreed to buy more than 90% in Star Health from existing investors Star Health Investments Pvt. Ltd and private equity funds managed by ICICI Venture, Tata Capital and Apis Partners. After the success of Zomato IPO last week, most Indian origin companies are rushing for their IPO, to get the maximum out of it. 

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