Rakesh Jhunjhunwala-backed Star Health IPO to open on November 30: View price band and other details

New Delhi: Star Health and Allied Insurance Company on Wednesday said it has fixed a price band of Rs 870-900 per share for its Rs 7,249 crore initial public issue, which will open on November 30.

The three-day initial public offering (IPO) will end on December 2. Bids for anchor investors will open on November 29, the company announced.

The IPO includes fresh issue of equity shares worth Rs 2,000 crore and offer for sale of 58,324,225 equity shares by promoters and existing shareholders.

Promoters and promoter groups – Safecrop Investments India LLP, Konark Trust, MMPL Trust – and existing investors – Apis Growth 6 Ltd., MIO IV Star, University of Notre Dame du Lac, Mio Star, ROC Capital Pvt Ltd, Venkatasamy Jagannathan, Sai Satish and Bergis Meenu Desai.

The public offering includes reservation of shares worth Rs 100 crore for employees.

At the upper end of the price band, the initial share-sale is expected to fetch Rs 7,249.18 crore.

The proceeds from the new issue will be used to enhance the capital base of the company.

About 75 per cent of the issue size is reserved for Qualified Institutional Buyers (QIBs), 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.

Investors can bid in a minimum of 16 equity shares and multiples thereof.

Star Health, the leading private health insurance company in the country, is owned by a consortium of investors like Westbridge Capital and Rakesh Jhunjhunwala.

Currently, SBI Life Insurance Company, HDFC Life Insurance Company, ICICI Prudential Life Insurance Company and ICICI Lombard General Insurance Company are some of the insurance companies that are listed on the stock exchanges.

Kotak Mahindra Capital Company, Axis Capital, BofA Securities India, Citigroup Global Markets India, ICICI Securities, CLSA India, Credit Suisse Securities (India) Pvt Ltd, Jefferies India, Ambit, DAM Capital Advisors and IIFL Securities are the merchant bankers to the issue. ,

The equity shares of the company will be listed on BSE and NSE.

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