Rakesh Jhunjhunwala-backed Star Health IPO to open on November 30; price band fixed at Rs 870-900

Star Health IPO: Ace investor Rakesh Jhunjhunwala-backed Star Health and Allied Insurance Company's initial public offer (IPO) will open on November 30, 2021. The three-day IPO will close on December 2. The company, which will raise Rs 7,249 crore from share sale, has set the price band of Rs 870-900 per share for this IPO. Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala jointly hold 17.26 per cent stake in the company.

The share-sale for anchor investors is likely to begin on November 29.  

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The issue comprises fresh equity shares worth Rs 2,000 crore and an offer for sale (OFS) of up to 5.8 crore shares.  

Third-largest IPO this year after Paytm and Zomato, Star Health and Allied Insurance Company's IPO has reserved 75 per cent quota for QIBs, 15 per cent for NIIs and 10 per cent for retail investors. The company has also reserved shares worth Rs 100 crore for its employees.

A retail investor can invest a minimum of Rs 14,400 for a single lot comprising 16 equity shares, while he/she can buy a maximum of 13 lots (208 equity shares) worth Rs 1,87,200.  

Those offloading shares via OFS include promoters Safecrop Investments India LLP, KONARK Trust & MMPL Trust. Besides, APIS Growth 6, MIO IV Star, MIO Star, University of Notre Dame DU LAC, ROC Capital Pty Limited, Venkatasamy Jagannathan, Sai Satish and Berjis Minoo Desai will also offload some of their shareholding in the company via OFS.  

The book running lead managers to the issue are Kotak Mahindra Capital Company, Axis Capital, BofA Securities India, Citigroup Global Markets India, ICICI Securities, CLSA India, Credit Suisse Securities (India), Jefferies India, Ambit, DAM Capital Advisors, IIFL Securities, and SBI Capital Markets.

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