STAR HEALTH INSURANCE TO RAISE UP TO ₹3,000 CRORE

MUMBAI: Star Health and Allied Insurance Co Ltd, which focuses on health, travel and accident insurance, is looking to raise up to ₹3,000 crore in funding through primary and secondary stake sales, two people aware of the company’s fund raising plans said on condition of anonymity.

According to the two people mentioned above, Star Health has appointed a domestic investment bank to advise on the fund raise options, including an initial public offer in the near future.

“The company needs the funds to meet its growing capital base and for working capital requirement,” said the first person. “The proposed fund raise will include both primary and secondary stake sales, in which some of the existing shareholders will get a partial exit,“the person added.

Star Health is a joint venture between ICICI Ventures, Sequoia Capital, Tata Capital Growth Fund, Alpha TC Holdings and Oman Insurance Company.

Star Health raised its last round of funding in September last year in which two private equity funds—Apis Growth Fund I, a private equity fund managed by Apis Partners LLP, and India Advantage Fund Series 4, a private equity fund managed by ICICI Venture—acquired a minority stake in the company. The company did not disclose the details of the deal. In 2010, ICICI Venture invested ₹120 crore in Star Health for a minority stake. For the quarter ending March 31 last year, the company clocked net premium of ₹1,513 crore and booked a profit of ₹s136 crore.

Responding to an email query, a company spokesperson denied any fund-raising plans in the near future.