Star Health and Allied Insurance Company Ltd, owned by Rakesh Jhunjhunwala, has filed draft documents for its initial public offering (IPO) with the capital markets regulator SEBI. The company is owned by Safecrop Investments India LLP, WestBridge AIF I and leading investor Rakesh Jhunjhunwala, according to the DRHP (Draft Red Herring Prospectus). The private health insurer has a 15% market share. According to CRISIL Research, Start Health is one of the leading private health insurers and the largest retail health insurance company in India. Barbeque Nation and Nazara Technologies, owned by Rakesh Jhunjhunwala, were recently listed on the stock exchange.
According to the DRHP, Star Health and Allied Insurance Company is seeking to raise more than 2,000 rupees through the IPO, which will include a new share issue and offer to sell (OFS) by existing shareholders and even some promoters of the society. . The new issue will total up to Rs 2,000 crore, while the OFS will see shareholders sell up to Rs 6.01 crore of shares with a par value of Rs 10 each. These will include up to 3.06 crore of shares of Safecrop Investments India LLP, the promoter’s selling shareholder. Other selling shareholders include Apis Growth 6 Limited, University of Notre Dame DU LAC, MIO IV Star, Sai Satish, Konark Trust, Berjis Minoo Desai, MMPL Trust, among others.
The company proposes to use the new proceeds from the issue to increase its capital base. Kotak Mahindra Capital Company Limited, Axis Capital Limited, BofA Securities India Limited, Citigroup Global Markets India Private Limited and ICICI Securities Limited are the global co-coordinators and principal issuers.
Billionaire investor Rakesh Jhunjhunwala is one of the company’s three promoters, according to the DRHP. The big bull owns 7.68 crore of shares of Start Health and Allied Insurance, which translates to a 14% stake. Reka Rakesh Jhunjhunwala owns 1.78 crore of company shares or a 3.26% stake and is part of the promoter group. Rakesh Jhunjhunwala acquired his stake in the company at an average price of Rs 156.28 per share with his first share purchase in March 2019, according to the offering document. So far this year, Barbeque Nation and Nazara Technologies, two companies owned by Rakesh Jhunhunwala, have already entered the stock exchanges through IPOs.