Star Health IPO opens tomorrow: All you need to about price band, fresh issue and other details

Star Health and Alliance Insurance Company is set to open its initial public offering (IPO) tomorrow, 30 November. The company, in which ace investor Rakesh Jhunjhunwala also has a stake, will open for subscription at a price band of Rs 870-900 per share till 2 December. Star Health and Alliance Insurance Company is a leading private health insurer in India. It is owned by a consortium of investors like Jhunjhunwala and Westbridge. The shares are expected to be listed on 10 December on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). With this IPO, Star Health is aiming to raise Rs 7,249.18 crore. The IPO consists of fresh issue of equity shares worth Rs 2,000 crore and an offer-for-sale (OFS) of up to 58,324,225 equity shares by promoters and shareholders. The Star Health IPO has reserved 75 percent for Qualified Institutional Buyers (QIBs) and15 percent of the subscription is reserved for Non-Institutional Investors (NIIs). The remaining 10 percent of the subscription is available for retail investors. Rs 100 crore worth of equity shares have been reserved by Star Health for its employees. Investors who wish to subscribe to the IPO can bid in a lot of 16 shares, and its multiples later. If we take into account the upper price band, a single lot of the IPO will cost Rs 14,440. Company History: Star Health and Allied Insurance Company Ltd, a Chennai-based firm, was started in 2006. With a market share of 15.8 percent (Fiscal 2021), it is one of the leading private health insurers in India. The prime focus of the company is the retail health market segment, with a range of flexible and comprehensive coverage options for retail health, personal accident, group health, and overseas travel being offered by the company. After listing the company will join other listed peers like - HDFC Life Insurance Company, SBI Life Insurance Company, ICICI Lombard General Insurance Company, and ICICI Prudential Life Insurance Company. The proceeds from the fresh issue of the Star Health IPO will be used to enhance the company’s capital base as well as maintain its solvency levels.