Star Health and Allied Insurance Company Limited

Rs. 870-900
30 Nov-02 Dec 2021
Rs. 10
Rs. 7,249/- Cr
Rs.2,000/- Cr
Rs. 5249/- Cr
Book Building
Dec 10, 2021
Not More than 75% of the offer
Not less than 15% of the offer
Not less than 10% of the offer
KFintech Private Limited
Ambit Private Limited, Axis Capital Limited , BofA Securities India Limited, Citigroup Global Markets India Private Limited , CLSA India Private Limited , Credit Suisse Securities (India) Private Limited , DAM Capital Advisors Ltd (Formerly IDFC Securities Ltd) , ICICI Securities Limited , IIFL Securities Ltd , Jefferies India Private Limited , Kotak Mahindra Capital Company Limited , SBI Capital Markets Limited
Company Profile

Star Health and Allied Insurance Company Limited (“Star Health”) was incorporated on June 17, 2005. Star Health is and continues to be the largest private health insurer in India with a market share of 15.8% in the Indian health insurance market in Fiscal 2021. The company primarily focuses on the retail health and group health segments which accounted for 89.3% and 10.7% of the company's total GWP in Fiscal 2021 respectively.

The company mainly distributes policies through individual agents and also includes corporate agent banks and other corporate agents. As of Sep 31, 2021, its network distribution includes 779 health insurance branches across 25 states and 5 union territories in India. Star Health has also built one of the largest health insurance hospital networks in India with more than 11,778 hospitals. Safecrop Investments India LLP, Westbridge AIF I and Rakesh Jhunjhunwala are the company promoters.

Company financial
Summary of financial information (consolidated)
For year/ period ended ( in Cr.)
  31 Mar 2021 31 Mar 2020 31 Mar 2019
Gross Premium 9348.95 6890.67 5415.36
Profit After Tax (825.58) 268.00 128.23
EPS (16.54) 5.59 2.81
OPM(%) -- -- --
PATM(%) -- -- --
Competitive Strengths
  • It is the largest private health insurance company in India with leadership in the attractive retail health segment.
  • It has the largest network distribution in the health insurance industry.
  • Diversified product suite with a focus on innovation and specialized products.
  • Strong risk management with superior claims ratio and quality customer services.
  • Demonstrated track record of operating and financial performance.
Objective of the Issue
The Company proposes to utilise the net proceeds towards funding the following objects:
  • The IPO aims to utilize the net proceed to augment the company's capital base and insolvency level.
  • To achieve the share listing benefits on the BSE and NSE.
Valuation & View

The company has suffered a severe setback for the last 18 months working and based on its negative earnings, the issue appears aggressively priced. Investors should not get carried away due to the fewer quotas for the Retail investors. You may get a chance to buy at discount post listing.