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All that you should know about the Company before applying for the IPO.
The public issue of equity shares of Star Health and Allied Insurance Company Limited will open for subscription on November 30, 2021 and closes on December 02, 2021. It is expected to list on the stock exchanges on December 10, 2021. What does the company do? Why is the company going public? Who are its key competitors? Its key strengths, and lot more. Here’s everything that you want to know about the company to analysis the IPO.
The Company is the largest private health insurer in India with a market share of 15.8% in the Indian health insurance market (FY 21). It is also the largest Standalone Health Insurance (SAHI) company in the overall health insurance market in India. It offers a range of flexible and comprehensive coverage options primarily for retail health, group health, personal accident, and overseas travel. Retail health and group health accounts for 87.9% and 10.5% of its total Gross Written Premium (GWP), respectively. Its retail health GWP was over 3 times the retail health GWP of the next highest retail health insurer (FY 21).
The Company distributes its health insurance policies primarily through individual agents, which accounted for 78.9% of its GWP (FY 21). The Company has the largest number of individual agents among SAHI insurers with approx. 5.10 lakh individual agents, as of September 30, 2021 (3 times that of the SAHI company with the next highest number of agents). Other modes of sales include distribution by direct online sales through telemarketing and its website, brokers, insurance marketing firms and web aggregators.
The Company has 779 health insurance branches spread across 25 states and 5 union territories in India (over two and a half times the number of the next largest non-public health insurance provider). These branches are also supplemented by an extensive network of over 562 Sales Managers Stations, which are small individual ser-vice centers, and over 6,892 in-house sales manager. Moreover, the Company has one of the largest health insurance hospital networks in India, with 11,778 hospitals as of September 30, 2021.
The Company has a solvency ratio of 1.52x, compared to the IRDAI prescribed control level of 1.50x, as of September 30, 2021.
TALK TO STAR
It is an in-house tele-medicine service of the Company through which it engages with its customers, which reduces costs associated with claims by giving customers access to experienced doctors that can give second opinions and alternative medical solutions over the telephone or internet and, where possible, real-time updates.
Safecrop Investments India LLP, Westbridge AIF I, & Rakesh Jhunjhunwala
Given below are the objectives of the Company –
The Company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:
The Offer comprises a Fresh Issue by the company and an Offer for Sale by the selling shareholders. The company will not receive any proceeds from the Offer for Sale.
| IPO Size | ₹ 7249.18 Crore* |
|---|---|
| Offer Mix | Fresh Issue ₹ 2000 Crore + Offer For Sale ₹ 5249.18 Crore |
| Price Band | ₹ 870 - ₹ 900 |
| Lot Size | 16 Shares (& in multiples thereof) |
| Face Value | ₹ 10 |
| Application Amount | Min. ₹ 14,400 (1 lot) | Max. ₹ 1,87,200 (13 lots) [at upper price band] |
| Listing on | NSE & BSE |
| Registrar | KFin Technologies Private Limited |
| Discount | ₹ 80 per equity share for Eligible Employees Category only |
| Cut-off time for UPI Mandate Confirmation | 03-Dec-2021 (up to 12:00 PM) |
| QIB |
₹ 5361.88 Crore (75% of Net Issue Size) |
|---|---|
| NIB |
₹ 1072.38 Crore (15% of Net Issue Size) |
| Retail |
₹ 714.92 Crore (10% of Net Issue Size) |
| Employee Reservation Portion | ₹ 100 Crore |
| Activity | Date |
|---|---|
| IPO Opens | November 30, 2021 |
| IPO Closes | December 02, 2021 |
| Finalization of the basis of allotment | December 07, 2021 |
| Unblocking of funds / Initiation of refunds | December 08, 2021 |
| Credit of equity shares to Demat accounts | December 09, 2021 |
| Listing of equity shares | December 10, 2021 |
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