Private equity/VC investors, including ICICI Venture and Sequoia Capital along with Oman Insurance, have infused Rs 50 crore into Chennai-based Star Health Insurance.
Speaking to reporters, Star Health’s chairman and managing director V Jagannathan said the company was planning to raise around Rs 170 crore during the current fiscal of which Rs 50 crore was raised from the existing investors till December 2011. The company has introduced its single protection policy for the entire family.
The money was raised through a rights issue and the shares were allocated at a price of Rs 28.70, including Rs 18.75 premium.
“We are talking to the existing and new investors to raise another Rs 120 crore,” he said. The existing investors include Sequoia Capital, ICICI Venture and Oman Insurance.
The present equity capital base of Star Health is Rs 438 crore, including paid-capital of Rs 278 crore and Rs 160 crore from premium.
Both Sequoia Capital and ICICI Venture have invested Rs 140 crore and Rs 130 crore, respectively.
As on date, the shareholding of the company is 35 per cent — held by a special purpose vehicle called Star Health Investments Ltd — while Sequoia Capital holds 25 per cent, ICICI Venture 22 per cent, Oman Insurance eight per cent and the rest is held by others.
Meanwhile, the insurer plans to close the current the fiscal with a premium of Rs 1,200 crore. He said the company had lost Rs 800 crore premium from two state governments — Tamil Nadu (Rs 600 crore & Andhra Pradesh Rs 200 crore) — since these governments had decided to manage the insurance on their own.
Of the total premium collection, 75 per cent comes from health insurance while the remaining 25 per cent is from personnel accident and overseas.
