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.

Company Profile

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.

Who are the Promoters of the Company?

Safecrop Investments India LLP, Westbridge AIF I, & Rakesh Jhunjhunwala

Positives about the Company

• Largest private health insurance company in India with leadership in the retail health segment
• One of the largest and well spread distribution networks in the health insurance industry and integrated ecosystem
• Product suite with a focus on innovative and specialized products
• Risk management focus with domain expertise driving a superior claims ratio and quality customer service
• Substantial investment in technology and innovative business processes
• Demonstrated superior operating and financial performance

Who are its key competitors?

• ICICI Lombard General Insurance Company Limited
• New India Assurance Company Limited

Why is the Company going public?

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:

• Towards augmentation of its capital base and maintenance of solvency levels
• To undertake its existing business activities
• To undertake the activities proposed to be funded from the Net Proceeds.
• To receive the benefits of listing of the Equity Shares.

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 Details

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