As per a leading online business portal, Star Health Insurance is making way to hit the primary market in 2021 and tap on the current IPO frenzy. The company is backed by ace investorRakesh Jhunjhunwala and private equity firms Westbridge Capital and Madison Capital.
This plan comes as the company sees increasing opportunity and demand for health insurance in the aftermath of the pandemic. "Star Health Insurance is growing at a fast clip and has been valued in excess of $3 billion. The firm is planning to raise around Rs 3000 crore via the proposed IPO, though the quantum has not been finalised as yet and a final call will be taken later. As of now, the plan is to file the DRHP (draft red herring prospectus ) with Sebi in May," said one of the persons cited above.
"Kotak Mahindra Capital, Citi, Axis Capital, ICICI Securities and BofA Securities are the investment banks engaged by the firm for the IPO," said a second person, adding that the kick-off meeting for the listing concluded earlier in the week.
"The key investors in the firm are likely to dilute a minority stake as part of the proposed IPO. It will be a combination of fresh issue of shares and offer for sale," added a third person.
"Star Health is a good quality firm and will set a strong benchmark. Moreover, there is no listed retail health insurance player in India," said a senior industry executive who closely tracks the insurance sector. Star Health counts Max Bupa, ICICI Lombard, HDFC Ergo, Bajaj Allianz and New India Assurance as its peers in the segment.
In 2018, there was signed a definitive agreement with the Star Health shareholders to buy up to 90% stake in the firm.
"The management of Star Health has built its leadership position in private health insurance through innovation, perseverance and excellence. I believe health insurance is a key tool for every citizen towards financial stability. I am proud to be associated with Star Health and believe it is best equipped to serve the country's health insurance needs" Rakesh Jhunjhunwala had said post the acquisition.