The Initial Public Offering (IPO) of Star Health and Allied Insurance Company will close on Thursday, December 2. This is the last chance for investors to book the first offer. Backed by veteran investor Rakesh Jhunjhunwala, Star Health & Allied Insurance is India’s first pure-play health insurance company. The company has fixed a price band of Rs 870-900 per share. Ace Star Health And Allied Insurance Company IPO This includes a fresh issue of Rs 2,000 crore and an offer of equity (OFS) of Rs 5,249 crore (5.8 crore shares) by promoters and existing shareholders. Interested investors can bid in multiples of 16 units. The Company will not receive any income from the OFS portion of the issue. The net proceeds of the Star Health and Allied Insurance Company IPO will be used to increase the capital base, thereby maintaining the solvency level of the company.
Star Health & Allied Insurance Company IPO Valuation & Subscription Status
The IPO is valued at 14.9x FY21 book value, a significant . looks at
Premium in comparison to ICICI Lombard and New India assurances, of which
The listed location has got a presence in the health insurance business. Hence, most of the brokerage houses recommend subscribing to Star Health IPO with caution and for long term gains.
Star Health’s IPO got 20 per cent subscription on the second day of bidding with support from retail investors. Most of the bids have come from retail investors, who have only 10 per cent quota in the IPO as against 35 per cent. The company had earlier said that it has raised Rs 3,217 crore from anchor investors ahead of its IPO.
Star Health & Allied Insurance IPO Gray Market Premium:
According to IPO Watch, the gray market premium of Star Health and Allied Insurance as on December 2 was Rs 15. The unlisted shares of Star Health & Allied Insurance were trading at Rs 150 in gray market on 24 November. However, the Star Health & Allied Insurance IPO GMP has seen a significant drop in the past one week.
Star Health & Allied Insurance IPO: Company Profile
Established in 2006, Star Health & Allied Insurance Company Limited (Star Health) is one of the largest private health insurance companies in India, with a market share of 15.8 percent in fiscal 2021. The company primarily focuses on the retail health market segment. It offers a range of flexible and comprehensive coverage options for retail health, group health, personal accident and foreign travel, which account for 87.9 percent, 10.5 percent, 1.6 percent and 0.01 percent of the total written down, respectively. Premium (GWP) in the financial year 2021. As of September 30, 2021, its network distribution includes 779 health insurance branches in 25 states and 5 union territories of India. Star Health has built one of the largest health insurance hospital network in India with over 11,778 hospitals.
Star Health & Allied Insurance IPO: Should You Subscribe?
“Due to the COVID pandemic, there has been increased awareness in the health insurance sector and the retail health market segment is expected to emerge as a major growth driver for the overall health insurance industry in India. The health insurance sector has a strong positive outlook and since there are only two listed general insurance companies in India, ICICI Lombard and New India Insurance, we expect Star Health to be a good investment option for the long term,” said Ravi Singh , said Head of Research and Vice President at ShareIndia.
“Star Health stands out amongst other Standalone Health Insurers (SAHIs) in terms of size, strong growth rate (32% Gross Written Premium CAGR in FY2018-21) and superior operating performance, which has contributed to the growth in pre-Covid numbers for the company. reflected (93 percent combined ratio). The valuation controlled by Star Health at 5.5x mcap/GWP as of FY2011 is in line with recent deals in the SAHI space and appears reasonable given its position. Hence, we recommend subscribing only from a long term perspective,” said Amarjeet Maurya – AVP – Mid Cap, Angel One Ltd.
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