Rakesh Jhunjhunwala-owned Star Health and Allied Insurance Company Ltd has filed draft papers for its initial public offer (IPO) with capital markets regulator SEBI. The company is owned by Safecrop Investments India LLP, WestBridge AIF I, and ace 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 a leading private health insurer and the largest retail health insurance company in India. Rakesh Jhunjhunwala-owned Barbeque Nation and Nazara Technologies listed on the stock exchanges recently.
According to the DRHP, Star Health and Allied Insurance Company is looking to raise more than Rs 2,000 through the IPO, which will include a fresh issue of equity shares and an offer for sale (OFS) by existing shareholders and even some promoters of the company. The fresh issue will aggregate upto Rs 2,000 crore while the OFS will see shareholders sell up to 6.01 crore equity shares of face value Rs 10 each. These will include up to 3.06 crore equity shares by Safecrop Investments India LLP, the promoter 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 fresh issue proceeds to augment 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 Book Running Lead Managers to the Issue.
Billionaire investor Rakesh Jhunjhunwala is one of three promoters of the company, according to the DRHP. The big bull owns 7.68 crore equity shares of Start Health and Allied Insurance, translating to a 14% stake. Reka Rakesh Jhunjhunwala owns 1.78 crore equity shares of the company or a 3.26% stake and is part of the promoter group. Rakesh Jhunjhunwala has acquired his stake in the company at the average cost of Rs 156.28 per share with his first purchase of equity shares coming in March 2019, according to the offer document. So far this year, Barbeque Nation and Nazara Technologies, two Rakesh Jhunhunwala owned companies, have already entered the bourses through IPOs.