Star Health and Allied Insurance Company on Wednesday announced that it has fixed a price band of Rs 870-900 a share for its Rs 7,249-crore initial public offering, which will open on November 30. The three-day Star Health IPO or initial public offering will conclude on December 2.
The bidding for anchor investors will open on November 29, the company announced. Investors can bid for a minimum of 16 equity shares and in multiples thereof.
Star Health is a leading private health insurer in the country that is owned by big bulls like Rakesh Jhunjhunwala and Westbridge Capital.
According to the DRHP filed by the company, Star Health IPO comprises a fresh issue of equity shares worth Rs 2,000 crore and an offer-for-sale (OFS) 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 groups including Safecrop Investments India LLP, Konark Trust, and MMPL Trust. The existing investors are 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 equity shares of the company will be listed on the BSE and NSE. At the upper end of the price band, the initial share sale is expected to fetch Rs 7,249.18 crore.
The public offer includes a reservation of shares worth Rs 100 crore for employees. About 75 per cent of the issue size has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.
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.
Proceeds from the fresh issue would be used to augment the company’s capital base.
After the Initial Public Offering, Star Health Insurance will join its peers SBI Life Insurance Company, HDFC Life Insurance Company, ICICI Prudential Life Insurance Company and ICICI Lombard General Insurance Company that are already listed on the stock exchanges.