The shares of one of the largest private health insurers in India drops marginally after it receives a demand notice from GST Intelligence for 39 Cr.
At 11:10 a.m the shares of Star Health and Allied Insurance Company were trading at Rs. 579 down by 0.40 percent from its previous day close price and the market capitalization of the company is 33,752 Cr.
As per the reports, Star Health and Allied Insurance Company has received a Show Cause Cum Demand Notice from the Directorate General of GST Intelligence alleging a tax demand of Rs. 38.99 Cr, the tax demand pertains to the non-payment of the GST Liability by Star Health on the premium received by the company as a follower Insurer under a coinsurance arrangement during the period July 2017 to March 2023.
The company’s revenue has increased by 14.11 percent from 10,601 Cr in FY22 to 12,096 Cr in FY23, accompanied by decreasing losses of 1,040 Cr to a profit of 618 Cr.
The company has reported a return on equity (ROE) of 12.42 percent and a return on capital employed (ROCE) of 14.83 percent, this indicates that the company is making decent returns on its equity and capital employed.
According to the latest shareholding data available for the June 2023 quarter, the company’s
Promoters hold 58.25 percent stake, the Domestic Institutional Investors hold 3.09 percent
and the Foreign Institutional Investors (FII) hold 33.09 percent.
Star Health and Allied Insurance Company is one of the largest private health insurers that provides services in health, personal accident and overseas travel insurance etc , directly as well as through various channels like agents, brokers and online.
Written by: Bharath K.S
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