Star Health and Allied Insurance Company’s IPO will open on Tuesday, November 30 and end on December 2, the company, backed by billionaire investor Rakesh Jhunjhunwala, said.
Star Health and Allied Insurance also said that the tender for major investors will open on November 29. On Wednesday, the company announced that it had set a price range of ??870 and ??900 per share for its ??Initial public offering of 7,249 crore.
The IPO of Star Health and Allied Insurance includes a new issue of shares valued at Rs 2,000 crore and an offer to sell up to 58,324,225 shares by existing promoters and shareholders.
Those offering shares as part of the offer for sale are the promoter and group of promoters – Safecrop Investments India LLP, Konark Trust, MMPL Trust – and the 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 are the existing investors.
About 75% of the size of Star Health and Allied Insurance’s issuance was reserved for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors and the remaining 10% for Retail Investors.
Investors can bid on a minimum of 16 shares and in multiples thereof.
Star Health and Allied Insurance’s public offering includes a stock reservation valued at ??100 crore for employees. Star Health and Allied Insurance IPO Expected to Reach ??7,249.18 crore at the high end of the price range.
The proceeds of the new issue would be used to increase the capital of the company.
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 investment bankers of the show.
According to Reuters, shares of Star Health and Allied Insurance are expected to be listed on the Mumbai market around December 10 and make it the first insurer to hit the public markets since 2017.
Star Health and Allied Insurance is owned by a consortium of investors like Westbridge Capital and Rakesh Jhunjhunwala.
SBI Life Insurance Company, HDFC Life Insurance Company, ICICI Prudential Life Insurance Company and ICICI Lombard General Insurance Company are the few listed insurance companies.
(With contributions from the agency)