Star Health placed #1 in India’s retail health insurance industry based on retail health GWP.
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.
Their retail health GWP was more than three times that of the next biggest retail health insurance market player in Fiscal 2021, putting us in a strong position to continue to expand their company.
Competitive Strengths
- Largest private health insurance company in India with leadership in the attractive retail health segment;
- One of the largest and well-spread distribution networks in the health insurance industry and integrated ecosystem;
- Diversified product suite with a focus on innovative and specialized products;
- Strong risk management focus with domain expertise driving a superior claims ratio and quality customer service;
- Substantial investment in technology and innovative business processes; and
- Demonstrated superior operating and financial performance
Company Promoters
- Rakesh Jhunjhunwala
- Safecrop Investments India LLP
- WestBridge AIFI
Company Financials
| Particulars | For the year/period ended ( in Cr.) | |||
|---|---|---|---|---|
| 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | ||
| Total Assets | 10,500.99 | 6,126.73 | 4,872.46 | |
| Total Revenue | (907.78) | 461.96 | 226.25 | |
| Profit After Tax | (825.58) | 268.00 | 128.23 |
Objects Of The Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives.
Star Health IPO Peer Comparison
| S. No. | Company Name | PE |
| 1 | ICICI Lombard General Insurance Company Ltd | 47.78 |
| 2 | New India Assurance Company Limited | 15.93 |
Star Health IPO Risk
- The global COVID-19 epidemic has had a severe impact on their company.
- Maintaining market share and developing their business is dependent on their image, company’s reputation, and market perception, and any bad publicity might have a substantial unfavorable impact on their business.
- Clients and/or regulators may file lawsuits against them for suspected mis-selling.
- The cancellation of the voluntary quota share treaty (“VQST”) reinsurance treaty, as well as the modification in UPR accounting technique, have had a significant effect on their business.
- Failure to react to technological development and the increasing usage of data in the Indian health insurance sector might have a negative impact on their business.
Other Threats
- Their business is susceptible to corruption and misconduct, and such actions might have a significant negative impact on their operations.
- Their Equity Shares are the subject of certain ongoing judicial procedures. Any negative outcome in these actions might have a significant negative impact on their business
- It might have a significant negative impact on their business if they are unable to establish and extend their network of agents in a cost-effective way.
- Inadequacies in their information technology platforms may have a significant negative impact on their business
- Regulatory and legislative measures taken against them or their partners might hurt their reputation and have a significant negative impact on their company.
Star Health IPO – Details
| IPO Opening Date | 30 November 2021 |
| IPO Closing Date | 02 December 2021 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 7249.18 Crore |
| Face Value | ₹10 per equity share |
| IPO Price | [870] To [900] Per Equity Share |
| Market Lot | 16 Shares (1 Lot) |
| Min Order Quantity | 16 Shares |
| Listing At | BSE, NSE |
| Register | KFinTech Private Limited |
Star Health IPO – Date Schedule
| IPO Open Date | 30 November 2021 |
| IPO Close Date | 02 December 2021 |
| Basis of Allotment Date | 07 December 2021 |
| Initiation of Refunds | 08 December 2021 |
| Credit of Shares to Demat Account | 09 December 2021 |
| IPO Listing Date | 10 December 2021 |
Star Health IPO – Lots Size & Price
| Application | Lots | Shares | Amount ( Cut-Off) |
| Minimum | 1 | 16 | 14,400 |
| Maximum | 13 | 208 | 1,87,200 |
Promoter Holding
| Pre Issue Share Holding | 66.22% |
| Post Issue Share Holding | 58.42% |
Star Health IPO Prospectus
Company Contact Information
| Star Health and Allied Insurance Company Limited No.1, New Tank Street,Valluvarkottam High Road, Nungambakkam, Chennai Tamil Nadu 600 034 India Telephone: +91 44 2828 8800 E-mail: investors@starhealth.in Website: www.starhealth.in |
Star Health IPO Registrar
| KFin Technologies Private Limited Selenium, Tower B, Plot No- 31 and 32 Financial District, Nanakramguda, Serilingampally, Hyderabad Rangareedi 500 032 Telangana, India Tel: +91 40 6716 2222/ 180034 54001 E-mail: starhealth.ipo@kfintech.com Website: www.kfintech.com |
Star Health IPO Lead Manager(s)
| 1. Kotak Mahindra Capital Company Limited 2. Axis Capital Limited 3. BofA Securities India Limited 4. Citigroup Global Markets India Private Limited 5. ICICI Securities Limited 6. CLSA India Private Limited 7. Credit Suisse Securities (India) Private Limited 8. Jefferies India Private Limited 9. Ambit Private Limited 10. DAM Capital Advisors Limited 11. IIFL Securities Limited 12. SBI Capital Markets Limited |
Star Health IPO FAQs
| When Star Health IPO will open? The Star Health IPO dates are 30 November 2021 To 02 December 2021. |
| What is the lot size of Star Health IPO? Star Health IPO lot size and the minimum order quantity is [16 Shares]. |
| How to apply for Star Health IPO? You can apply in Star Health IPO online using either UPI or ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO application is offered by brokers who don’t offer banking services. |
| When is Star Health IPO listing date? The Star Health IPO listing date is announced. The date of Star Health IPO listing is [10 December 2021]. |
