Star Health & Allied Insurance Company Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹900
Per ShareLot Size
16 Shares
Minimum Investment
₹14,400
Issue Size
₹7,074.21 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
10%
QIB Quota
75%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Star Health & Allied Insurance Company Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
62.75%
Promoter Holding (Post-Issue)
60.33%
Issue Type
Book Building
ISIN
INE575P01011
About the Company
Star Health and Allied Insurance Company Limited is and continue to be the largest private health insurer and largest retail health insurance company in India, according to CRISIL Research, and it had GWP of Rs. 93,489.50 million in Fiscal 2021. Its comprehensive health insurance product suite insured 20.5 million lives in Fiscal 2021 in retail health and group health, which accounted for 89.3% and 10.7%, respectively, of its total health GWP in Fiscal 2021. Its 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.
Industry Overview
The Indian health insurance market remains in the early stages of its life cycle and continues to be one of the most underpenetrated health insurance markets globally, according to CRISIL Research. A number of demographic factors, including increasing life expectancy and population growth, as well as growing awareness of health insurance, are expected to continue to drive growth in the health insurance industry in India, with the retail health insurance segment being particularly attractive due to its lower penetration, density and claims ratio, as well as its higher premium per person, compared to other health insurance segments in India, according to CRISIL Research.
Company History
Star Health and Allied Insurance Company Limited was incorporated as a public limited company, at Chennai under the Companies Act, 1956 on June 17, 2005 and was granted the certificate of incorporation by the Registrar of Companies, Tamil Nadu at Chennai. The Company was granted its certificate for commencement of business on December 9, 2005 by the RoC.
Products & Services
- Retail health insurance, Group health insurance, Government health insurance, Personal accident, Travel insurance
Growth Strategy
- Continue to leverage and enhance market leadership in the attractive retail health insurance segment.
- Continue to enhance existing distribution channels and develop alternative channels.
- Continue product innovation and provide value added services.
- Utilize the digitization of its business to improve operational efficiencies and customer service.
- Drive profitability by leveraging scale and further improving financial performance.
- Respond to the challenges posed by COVID-19 Pandemic and adapt to the post-COVID-19 environment.
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a standalone basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offer of 71,125,997* equity shares of face value of Rs. 10 each ("Equity Shares") of Star Health and Allied Insurance Company Limited ("Company" or "Issuer") for cash at a price of Rs. 900^ per equity share (including a share premium of Rs. 890 per equity share) aggregating Rs. 6400.44 crores (The "Offer") comprising a fresh issue of 22,232,230* equity shares aggregating Rs. 2000.00^ crores (The "Fresh Issue") and an offer for sale of 48,893,767* equity shares, including 29,854,380 equity shares by Safecrop Investments India LLP ("Promoter Selling Shareholder"), 133,925 equity shares by Konark Trust, 9,249 equity shares by MMPL Trust ("Promoter Group Selling Shareholders") 4,348,245 equity shares by Apis Growth 6 Limited, 3,383,255 equity shares by Mio IV Star, 5,629,019 equity shares by University of Notre Dame DU LAC, 2,487,714 equity shares by Mio Star, 1,403,980 equity shares by Roc Capital Pty Limited, 1,000,000 equity shares by Venkatasamy Jagannathan, 500,000 equity shares by Sai Satish and 144,000 equity shares by Berjis Minoo Desai (collectively, the "Other Selling Shareholders" and collectively with the promoter selling shareholder and promoter group selling shareholders are referred to as the "Selling Shareholders", and such equity shares, the "Offered Shares") aggregating Rs. 4400.44 crores (The "Offer for Sale"). The offer shall constitute 12.36% of the post-offer paid-up equity share capital of the company. The offer includes a reservation of 112,592* equity shares, aggregating Rs. 9.23^ crores (constituting 0.02% of the post-offer paid-up equity share capital, for subscription by eligible employees ("Employee Reservation Portion"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The offer and the net offer constitute 12.36% and 12.34%, respectively, of the post-offer paid-up equity share capital of the company. The face value of equity shares is Rs. 10 each. The offer price is Rs. 900 per equity share and is 90 times the face value of the equity shares. The anchor investor offer price is Rs. 900 per equity share. *Subject to finalisation of the basis of allotment. ^A discount of Rs. 80 per equity share was offered to eligible employees bidding in the employee reservation portion. Bids can be made for a minimum of 16 equity shares and in multiples of 16 equity shares thereafter.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Largest private health insurance company in India with leadership in the retail health segment;
- One of the largest and well spread distribution networks in the health insurance industry and integrated ecosystem;
- Product suite with a focus on innovative and specialized products;
- Risk management focus with domain expertise driving a superior claims ratio and quality customer service;
- Substantial investment in technology and innovative business processes;
- The recent global COVID-19 outbreak has significantly affected its business and operations.
- Its brand, business reputation and market perception is critical to maintaining market share and growing its business and any negative publicity could have a material adverse effect on its business, financial condition and results of operations.
- Its depend on the accuracy and completeness of information provided by or on behalf of its customers and counterparties for pricing and underwriting its insurance policies, handling claims and maximizing automation, the unavailability or inaccuracy of which could limit the functionality of its products and disrupt its business.
- The company has incurred losses in Fiscal 2021 and the six months ended September 30, 2021 and may incur losses in the future, which could adversely affect its operations and financial conditions and the trading price of its Equity Shares.
- Its loss reserves are based on estimates as to future claims liabilities and if they prove inadequate, it could lead to further reserve additions and materially adversely affect its results of operations.