Star Health IPO to open on Nov 30; priced at ₹870-900
AT THE UPPER END OF THE PRICE BAND, THE INITIAL SHARE SALE IS EXPECTED TO FETCH THE FIRM ₹7,249.18 CRORE
NEW DELHI: Star Health and Allied Insurance Company on Wednesday said it has fixed a price band of ₹870-900 a share for its ₹7,249-crore initial public offering, which will open on November 30.
The three-day initial public offering (IPO) will conclude on December 2. The bidding for anchor investors will open on November 29, the company announced.
The IPO comprises fresh issue of equity shares worth ₹2,000 crore and an offer-forsale of up to 58,324,225 equity shares by promoters and existing shareholders.
Those offering shares through the offer-for-sale are promoter and promoter group -- Safecrop Investments India LLP, Konark Trust, MMPL Trust -- and existing investors -- Apis Growth 6 Ltd, Mio IV Star, University of Notre Dame Du Lac, Mio Star, ROC Capital Pty Ltd, Venkatasamy Jagannathan, Sai Satish and Berjis Minoo Desai.
The public offer includes a reservation of shares worth ₹100 crore for employees.
At the upper end of the price band, the initial share-sale is expected to fetch ₹7,249.18 crore.
Proceeds from the fresh issue would be used to augment the company’s capital base.
About 75% of the issue size has been reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors and the remaining 10 per cent for retail investors.
Investors can bid for a minimum of 16 equity shares and in multiple thereof.
Star Health, leading private health insurer in the country, is owned by a consortium of investors like Westbridge Capital and Rakesh Jhunjhunwala.
At present, SBI Life Insurance Company, HDFC Life Insurance Company, ICICI Prudential Life Insurance Company and ICICI Lombard General Insurance Company are the few insurance companies which are listed on the stock exchanges.
Kotak Mahindra Capital Company, Axis Capital, BofA Securities India, Citigroup Global Markets India, ICICI Securities, CLSA India, Credit Suisse Securities (India) Private Limited, Jefferies India, Ambit, DAM Capital Advisors and IIFL Securities are the merchant bankers to the issue.
The equity shares of the company will be listed on the BSE and NSE.
If fully subscribed, Star Health’s IPO would be the third largest this year after fintech firm Paytm and food-delivery firm Zomato, whose offerings raised $2.46 billion and $1.26 billion, respectively.
The proceeds will be used to improve the capital base and maintain solvency levels, according to its prospectus.
The company’s shares are expected to be listed in the Mumbai market around December 10 and would make Star Health the first insurance provider to hit public markets since 2017.
Investors will closely watch its offer subscription as Paytm’s dismal debut last week has cast doubts on the upcoming IPOs and sparked concerns about overvaluation in the domestic equity market.
On Tuesday, Indian payments firm MobiKwik deferred its plas for public listing, following Paytm’s lackluster performance in the stock market in its first two trading session.