The initial public offering for health insurance company Star Health—which is backed by billionaire investor Rakesh Jhunjhunwala—saw bids of over 53.19 lakh shares as against the 4.49 shares on offer. The issue was subscribed 12 per cent.
The price band was fixed at Rs 870-900. The IPO consisted of a fresh issue worth up to Rs 2,000 crore and an offer of sale (OFS) of 5,83,24,225 equity shares. The company planned to raise Rs 7,249 crore from investors, as it looks to augment its capital base and maintain solvency levels.
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The company had a 15.8 per cent overall health insurance market share and a 31.3 per cent retail health insurance market share in FY21, according to CRISIL Research. The company says it had a gross written premium of Rs 93.5 billion that fiscal.
Motilal Oswal had noted in an article in October that only three per cent of India's population is covered under retail health insurance plans, with coverage increaseing to 37 per cent iwith governmenmt and corporate schemes.
Promoters Safecorp Investments, Konark Trust and MMPL Trust as well as a few other investors are looking to trim their stake in Star Health through the IPO. Jhunjhunwala holds 14 per cent stake in the company while wife Rekha holds 3.26 per cent. Both are not pairing their stake.
