Star Health and Allied Insurance Co (SHAICL), owned by a consortium of investors, including Rakesh Jhunjhunwala and Westbridge Capital, has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India to raise funds via an initial public offering (IPO).
The Chennai-based standalone health insurance company’s IPO comprises equity shares of face value of Rs 10 each comprising a fresh issue aggregating up to Rs 2,000 crore and an offer for sale of up to 6.01 crore equity shares, including up to 3.06 crore equity shares by Safecrop Investments India LLP (promoter selling shareholder), up to 1.37 lakh equity shares by Konark Trust, up to 9,518 equity shares by MMPL Trust (promoter group selling shareholders) and up to 76.80 lakh equity shares by Apis Growth 6.
The offer also comprises up to 41.10 lakh equity shares by Mio IV Star, up to 74.38 lakh equity shares by University of Notre Dame Du Lac, up to 41.10 lakh equity shares by Mio Star, up to 25.09 lakh equity shares by ROC Capital Pty Ltd, up to 14.76 lakh equity shares by Venkatasamy Jagannathan, up to 18.04 lakh equity shares by Sai Satish and up to 1.44 lakh equity shares by Berjis Minoo Desai. The offer includes a reservation for subscription by eligible employees.
The net proceeds from the fresh issue are proposed to be utilised for augmentation of the company’s capital base.
Star Health was founded by V Jagannathan, who earlier headed United India Insurance in 2006 and provides health insurance, overseas mediclaim and personal accident policies. A consortium led by Rakesh Jhunjhunwala and Westbridge Capital had acquired over 90% stake in the company in 2019.
For the IPO, Kotak Mahindra Capital Company, Axis Capital, BofA Securities India, Citigroup Global Markets India and ICICI Securities are the global co-coordinators and book running lead managers. CLSA India, Credit Suisse Securities (India) and Jefferies India are the book running lead managers to the issue. Ambit Pvt Ltd, DAM Capital Advisors (formerly IDFC Securities ) and IIFL Securities and SBI Capital Markets are the co-book running lead managers to the issue.