Star Health files draft papers for $1 billion IPO

Star Health and Allied Insurance Co. Ltd, backed by a group of investors including Rakesh Jhunjhunwala and Westbridge Capital, will aim to raise as much as 7,500 crore through an initial public offering (IPO), a person aware of the plans said, requesting anonymity.

Star Health on Thursday filed a draft prospectus with the Securities Exchange Board of India (Sebi) for the share sale. A successful IPO will make the health insurer the fourth private sector insurance firm to list on the domestic stock exchanges. The IPO will comprise a fresh issue of 2,000 crore and an offer for sale (OFS) of 60.10 million shares by existing shareholders.

Kotak Investment Banking, Axis Capital, Bofa Securities India, ICICI Securities, Ambit Pvt. Ltd, DAM Capital Advisors and others are advisors to the IPO.

Founded in 2006 as India’s first standalone health insurance provider, Star Health provides health, personal accident and overseas travel insurance.

The investor consortium of Westbridge Capital, Rakesh Jhunjunwala and Madison Capital, had in August 2018 agreed to buy more than 90% in Star Health from existing investors Star Health Investments Pvt. Ltd and private equity funds managed by ICICI Venture, Tata Capital and Apis Partners.

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