Star Health Insurance IPO, Everything you need to know

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Hi friends Today we are discussing about the India largest private insurance Company,(Star Health Insurance Ipo)

And in this Article you will get everything in detail about star health insurance.

So let’s push ahead.

Star Health insurance IPO

Star Health Insurance is the largest private health insurance company and the largest retail health insurance company in India by health GWP (Gross Written Premium), with a 15.8% overall health insurance market share and a 31.3% retail health insurance market share in Fiscal 2021.

The company is mainly focused on the retail health market segment with a GWP of Rs. 8,215.09 crores which accounted for 89.3% of the company’s total health GWP in Fiscal 2021.

From being the first standalone health insurance (SAHI) company established in India in 2006, the company has grown into the largest SAHI company in the overall health insurance market in the country with a total GWP of Rs. 9,348.95 crores and a pan-India distribution network of 737 health insurance branches spread across 26 states and 4 union territories in India as of March 31, 2021.

The public offer of Star Health Insurance comprises a fresh issue of equity shares aggregating up to Rs. 2,000 crores and an offer for sale of 6 crore equity shares from existing shareholders.

Star Health Insurance IPO

Star Health And Allied Insurance

Star Health and Allied Insurance Company, which closed its initial public offering (IPO) on December 2, is expected to finalise the share allotment on December 7.

Most investors are likely to be allotted shares as the issue received 79 percent subscription, say experts. Against an offer size of 4.49 crore shares, bids were received for only 3.56 crore equity shares.

The Rs 7,249-crore public issue managed to meet the minimum criteria of 75 percent subscription but failed to get fully subscribed even after the closing time was extended by a few hours for investors (barring QIBs) and despite the company being backed by marquee investors Rakesh Jhunjhunwala, Safecrop Investments India LLP and Westbridge AIF.

Qualified institutional buyers (QIBs), who are the key investors in every public issue, have to bid at least up to 90 percent of their reserved portion.

Their portion got through on the last day, subscribing 1.03 times. Around 75 percent of the total offer size was reserved for QIBs.

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The offer comprised fresh issue of Rs 2,000 crore, and an offer for sale of Rs 5,249 crore, which will get reduced to the extent of under subscription, by selling shareholders, including Safecrop Investments India LLP.

The issue price could get finalised at the upper price band of Rs 900 a share.

How do I apply to the Star Health and Allied Insurance IPO?

You can apply for the Star Health and Allied Insurance IPO using any supported UPI app by following two steps:

  • Enter your bid on Console
  • Accept UPI mandate on your phone
  • On acceptance of the mandate, the bid amount will get blocked in your bank account.

Where do I check the allotment status for Star Health and Allied Insurance IPO?

You can check the allotment status for the Star Health and Allied Insurance IPO on the website of the Registrar and Transfer agent.

Alternatively, you can also check the allotment status on the NSE website. The tentative date of allotment is 7th December 2021.

How to check share allotment?

The share allotment will get finalised by the company on December 7. Investors can check their share allotment either on the BSE website or IPO registrar’s website.

In case of the BSE website, the allotment status can be checked by following these three steps:

  • a) Select the issue type (Equity) and the issue name (Star Health and Allied Insurance Company Limited)
  • b) Enter the application number and the Permanent Account Number (PAN)
  • c) Finally check the box (I’m not a robot), and click on the search button

Allotment can also be checked on the website of IPO registrar.

  • a) Select IPO (Star Health and Allied Insurance Company Limited) in the dropdown menu
  • b) Select and enter the application number, or DPID/client ID, or the PAN
  • c) Finally, enter Captcha and click on the submit button

Unsuccessful investors will get refunds in their bank accounts by December 8 and shares will get credited to the demat accounts of eligible investors by December 9. Trading in the shares will commence on the BSE and NSE from December 10.

As the issue was not fully subscribed, there is no grey market premium, IPO Watch and IPO Central said. The premium was at Rs 15-20 before the issue closed.

Overvaluation and the company’s loss-making status could be the reasons for the tepid response to the IPO at a time when most public issues have been lapped up by investors. Paytm has been another big exception.

“The pricing seems expensive given that it is also loss-making due to rising insurance claims in the last year. Nevertheless, Star Health does have fascinating prospects, being the most significant player in the retail health insurance segment, with excellent distribution and good products.

Still, the mood of the market is not favourable for giving high values for good prospects,” said Sonam Srivastava, founder of Wright Research.

Star Health claims to be the largest private health insurer in India, with a market share of 15.8 percent in FY21.

In FY21 and the six months ended September 2021, it had total gross written premium of Rs 9,348.95 crore and Rs 5,069.78 crore respectively.

The company reported a loss of Rs 825.58 crore in FY21, hit by Covid pandemic, against a profit of Rs 268 crore in FY20.

Loss in the six-month period ended September 2021 stood at Rs 380.27 crore against a profit of Rs 199.3 crore in the corresponding period last fiscal.

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