Indian insurer Star Health sets price band for IPO

Star Health and Allied Insurance Co. Ltd, owned by a consortium of investors, including Rakesh Jhunjhunwala and Westbridge Capital, has set the share’s price band for its initial public offering at 870-900 per share, valuing the company at 49,796 crore at the top end of the band.

The share sale will open between 30 November and 2 December. The company plans to list on exchanges on 10 December.

At the upper band of the price range, the firm plans to raise as much as 72,49.18 crore.

The health insurer’s IPO consists of a fresh issue of 2,000 crore and an offer for sale (OFS) of up to 58.32 million shares by its existing promoters and shareholders.

Currently, Safecrop Investments India LLP has a 47.77% stake, while Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala hold 14.98% and 3.23% stake, respectively, in the company. The proceeds from the issue will be deployed in the fiscal year 2022 towards the augmentation of its capital base.

According to IRDAI norms and regulations, the insurer is required to maintain a minimum solvency ratio of 1.5. As of 31 March, its solvency ratio was 2.23x. The proposed IPO will make Star Health the fourth private sector insurance provider to list on Indian stock exchanges.

Kotak Investment Banking, Axis Capital, BofA Securities India, Citigroup Global markets India, ICICI Securities, CLSA India Pvt. ltd, Credit Suisse Securities India, Jefferies India Pvt. Ltd, Ambit Pvt. Ltd, DAM Capital Advisors, IIFL Securities and SBI Capital Markets are managing the share sale.

This article was first published on livemint.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.