Star Health and Allied Insurance Limited IPO: GMP, Issue Size, Issue Details

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Star Health the largest private health insurance company, and the largest retail health insurance company is all set to make a debut on the stock market with an issue size of 7249.18 Cr.  

Star Health and Allied Insurance Limited IPO –Overview   

Star Health and Allied Insurance Limited IPO Issue Date   30 November 2021 – 2 December 2021  
Star Health and Allied Insurance Limited IPO Opening Date   30 November 2021  
Star Health and Allied Insurance Limited IPO Face Value   INR 10 per share   
Star Health and Allied Insurance Limited IPO Price   INR 900 per share  
Star Health and Allied Insurance Limited IPO Lot Size   16 Shares  
Issue Size   7,249.18 Cr  
Offer for sale   5,249.18 Cr  
Fresh Issue  2000 cr  
Issue Type   Book built Issue IPO   
Listing At   BSE, NSE  
QIB Shares Offered     1.3 times  
NII (HNI) Shares   1.09 times  
Company Promoters   Safecrop Investments India LLP, Westbridge AIF I, and Rakesh Jhunjhunwala are the company promoters.  
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Star Health and Allied Insurance Limited IPO-Tentative Dates   

Star Health and Allied Insurance Limited IPO opening date   30 November 2021    
Star Health and Allied Insurance Limited IPO closing date   2 December 2021  
Basis of Allotment   7 December 2021  
Initiation of Refunds   8 December 2021  
Credit of Shares to Demat  9 December 2021  
Star Health and Allied Insurance Limited IPO Listing Date   10 December 2021  

Star Health and Allied Insurance – Industry Overview.  

The global health insurance market is estimated to be around USD 1.5 trillion in 2019. The health insurance industry is mainly driven by a rise in health expenses and an increase in the prevalence of chronic diseases. Also, governments across countries are taking initiatives to increase health insurance coverage through different ways of funding. The outbreak of the COVID-19 pandemic has further accelerated the growth of the health insurance industry.   

Star Health

Asia region is expected to see relatively higher growth due to the enhancement of health facilities and rising awareness about health insurance resulting in higher demand for health insurance in highly populous countries such as India and China. The following graph sets the health insurance penetration in India and various countries in 2019.  

Star Health and Allied Insurance Limited IPO – Company Overview   

Star Health is the largest private health insurance company and the largest retail health insurance company in India by health GWP, with a 15.8% overall health insurance market share and a 31.3% retail health insurance market share in Fiscal 2021, according to CRISIL Research. As of March 31, 2019, 2020, and 2021, they issued 4.3 million, 5.1 million, and 7.0 million health insurance policies, which was the highest among all health insurance providers. Star Health’s retail health GWP was over three times the GWP of the next highest retail health insurance market participant in each of Fiscal 2019, 2020, and 2021, according to CRISIL Research. They are the largest SAHI insurer in India and the only SAHI company among the top five health insurance businesses in India in Fiscal 2021, according to CRISIL Research. As of December 31, 2020, they had the largest number of individual agents.  

SAHI insurers, at three times that of the SAHI company with the next highest number of agents, according to CRISIL Research. Star Health’s total number of individual agents grew at a CAGR of 27.3% from 0.29 million in Fiscal 2019 to 0.46 million in Fiscal 2021.  

It is one of the largest and well-spread distribution networks in the health insurance industry and an integrated ecosystem that enables us to continue to access the growing retail health insurance market.  

Star Health and Allied Insurance Limited IPO-Objectives   

  • The IPO aims to utilize the net proceeds to augment the company’s capital base and insolvency level.  

Star Health and Allied Insurance Limited IPO – Financial Statements   

Particulars  30-Sep-21  31-Mar-21  31-Mar-20  31-Mar-19  
Total Assets  49,749.42  21,008.88  44,665.72  18,967.69  
Total Revenue  – 4,946.80  3,343.05  – 9,077.76  4,619.61  
Profit After Tax  – 3,802.69  1,992.87  – 8,255.81  2,680.02  

Star Health and Allied Insurance Limited IPO Strengths  

  • Largest private health insurance company in India with leadership in the attractive retail health segment.  
  • Largest network distribution in the health insurance industry.  
  • Diversified product suite with a focus on innovation and specialized products.  
  • Strong risk management with superior claims ratio and quality customer services.  
  • Demonstrated track record of operating and financial performance.  
  • Approximately 97. 9% renewals by GWP grew at a CAGR of 32.5%.  
  • A total of 737 health insurance branches spread across 26 states and 4 union territories.  

Star Health and Allied Insurance Limited IPO Weakness   

  • The company could be subject to claims by customers and regulators for alleged mis-spelling.  
  • Failure to continue to adapt to technological change could adversely affect the business.  
  • The Covid –19 outbreak has significantly affected business and operations.  

Company Contact Information

Star Health and Allied Insurance Company Ltd
No.1, New Tank Street,Valluvarkottam High Road,
Nungambakkam, Chennai 600 034

Phone: +91 44 2828 8800
Email: investors@starhealth.in
Websitehttp://www.starhealth.in/

Star Health IPO Registrar

KFin Technologies Limited

Phone: 04067162222, 04079611000
Email: starhealth.ipo@kfintech.com
Websitehttps://karisma.kfintech.com/

Star Health IPO Lead Manager(s)

  1. Ambit Private Limited 
  2. Axis Capital Limited
  3. BofA Securities India Limited 

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