Star Health: An interesting opportunity for long-term investors

Industry leading growth and healthy financials in a sector with vast opportunity are positives

The Star Health & Allied Insurance Company (Star) IPO offers an interesting opportunity. The issue is for a stake of 16 per cent, aggregating between Rs 7,075 crore and Rs 7,250 crore with a combination of OFS (offer for sale) and fresh equity. The IPO band is of Rs 870-900 with lots of 16 shares. Implied market cap post-issue is a little above Rs 50,000 crore. The objective is augmentation of capital base and general corporate purposes. The promoter group would hold a 58 per cent stake after the offering. 

Star is the largest standalone health insurer. It has an