CHENNAI: Rakesh Jhunjhunwala-backed Star Health and Allied Insurance, the largest standalone health insurance company, plans to have a Rs 7,249-crore initial public offering (IPO). This will comprise an offer size of Rs 5,249 crore from existing promoters and shareholders. The IPO will begin on November 30 and close on December 2.
The price band is fixed at Rs 870-900 per equity share. Bids can be made for a minimum of 16 equity shares and in multiples of 16 thereafter. At the upper price band, the company is valued at Rs 51,000 crore, or $7 billion. Among the listed non-life insurance companies, ICICI Lombard General Insurance, the largest private insurer, is valued at Rs 73,050 crore, while the largest non-life company New India Insurance is valued at Rs 25,453 crore.
"Jhunjhunwala, who has 17.5% stake, will not be selling his shares under the offer for sale," MD S Prakash said. Overall, the promoters will dilute a 4.8% stake. After the dilution, the promoter stake will be at 55%.
The IPO consists of a fresh issue of shares of up to Rs 2,000 crore and an offer for sale of up to 5.8 crore shares by promoters and existing shareholders. The offer includes a reservation up to Rs 100 crore for subscriptions by eligible employees.