Rakesh Jhunjhunwala-backed Star Health IPO to open tomorrow; here's all you need to know

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The archetypal nationalist offering (IPO) of Star Health and Allied Insurance Company is slated to deed the superior marketplace connected November 30. The institution has fixed a terms set of Rs 870-900 for the archetypal stock sale. The nationalist connection volition adjacent connected December 2, 2021. The institution is owned by a consortium of investors including Safecrop Investments India, Westbridge Capital and ace equity capitalist Rakesh Jhunjhunwala. Here are the cardinal things you should cognize earlier subscribing to the IPO.

About the company 

Incorporated successful 2006, Star Health has grown into the largest standalone wellness security institution successful India with a marketplace stock of 15.8 per cent. Its broad wellness security merchandise suite insured 20.5 cardinal lives successful FY21 successful retail wellness and radical health, which accounted for 89.3 per cent and 10.7 per cent, respectively, of its full wellness gross written premium (GWP). It distributes its wellness security policies chiefly done idiosyncratic agents, which accounted for 78.9 per cent of its GWP successful FY21. Its organisation web has grown to 779 wellness security branches dispersed crossed 25 states and 5 national territories successful India.

About the issue

At the precocious terms band, the institution is aiming to rise Rs 7,249.20 crore. The contented is simply a operation of caller and connection for merchantability (OFS). Star Health volition not person immoderate proceeds from the OFS portion of the issue. Net proceeds from the caller contented volition beryllium utilized to augment the superior base, thereby maintaining the solvency levels of the company. In the past 6-12 months, the institution has issued shares to the investors astatine important discount to the contented price.

Grey marketplace premium

Shares of the institution are disposable astatine a premium of Rs 10-12 successful the unlisted market. Abhay Doshi, founder, Unlisted Arena told Business Today that the premium of Star Health declined sharply from Rs 150 to Rs 10 successful a week. Meanwhi...

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