The country's first standalone health insurance company is already backed by private equity majors including ICICI Venture and Sequoia Capital.
While two sources who are directly involved in the deal have confirmed that the fund has agreed to infuse the money for a minority stake, Star Health Chairman Cum Managing Director V Jagannathan said it was too early to comment. The sources said the fund to be infused is $23 million (Rs 125 crore) and the deal would be signed in the next few weeks.
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Sequoia Capital invested around Rs 140 crore in Star Health Investments Pvt Ltd (a special-purpose vehicle floated to promote Star Health Insurance) for around 40 per cent, while ICICI Venture invested around Rs 130 crore for a 24 per cent stake directly in Star Health Insurance. Some of the other major investors include Oman Insurance, Essa Abdullah Alghuair and other individuals.
The sources said the fund infusion was meant to support company's premium target for 2012-13.
The sources said the fund infusion is to support company's premium target for 2012-13.
According to the Insurance Regulatory and Development Authority (IRDA) data, between April and December 2012, Star Helath reported a 31 per cent drop in gross premium.