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Star Health trades flat on debut

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Capital Market
Last Updated : Dec 10 2021 | 2:05 PM IST

Shares of Star Health and Allied Insurance Company were currently trading at Rs 902 on the BSE, at a premium of 0.22% as compared to the issue price of Rs 900.

The scrip was listed at Rs 848.80, representing a discount of 5.69% to the initial public offer (IPO) price.

So far, the scrip has hit a high of 940 and a low of 827.50. Over 3.70 lakh shares of the company have changed hands in the counter till now.

The IPO of Star Health and Allied Insurance Company was subscribed 79%. The issue opened for bidding on 30 November 2021 and it closed 2 December 2021. The price band of the IPO was fixed at Rs 870-900.

The IPO consisted of a fresh issue worth upto Rs 2,000 crore and an offer of sale (OFS) comprising 5,83,24,225 equity shares.

The company proposes to utilize the net proceeds towards augmentation of its capital base and maintenance of solvency levels. Further, the company expects to receive the benefits of listing of the equity shares, including to enhance visibility and brand image among existing and potential customers.

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Star Health and Allied Insurance Company is the largest private health insurer in India with a market share of 15.8% in the Indian health insurance market in FY2021 in terms of Gross Written Premium (GWP). The company was the first standalone health insurance company established in India in 2006.

With the comprehensive health insurance product suite, the company insured 20.5 million lives in FY2021 in retail health (89.3% of total health GWP) and group health (10.7%).

The company offers a range of flexible and comprehensive coverage options primarily for retail health accounting for 87.9% of total GWP in FY2021, group health 10.5%, personal accident 1.6% and overseas travel 0.01%. The products target a variety of customer segments, including individuals, families, students, senior citizens, as well as persons with pre-existing medical conditions across the broader middle market customer segment.

The company is supported by promoters, including Rakesh Jhunjhunwala, Safecrop Investments India LLP, and WestBridge AIF I.

Star Health posted a loss of Rs 380.27 crore on a negative total income of Rs 494.68 crore in the six months ended September 2021.

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First Published: Dec 10 2021 | 10:32 AM IST

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