Star Well being and Allied Insurance coverage Firm’s preliminary public providing (IPO) will probably be closed on Thursday, December 2. Buyers have the final probability to guide the maiden provide. Backed by veteran investor Rakesh Jhunjhunwala, Star Well being and Allied Insurance coverage is India’s first pure-play medical health insurance firm. The corporate has fastened the worth band at Rs 870 – 900 per share. s Star Well being and Allied Insurance coverage Firm IPO comprised of contemporary subject of Rs 2,000 crore and provide on the market (OFS) of fairness price Rs 5,249 crore (5.eight crore shares) by promoters and present shareholders. buyers can bid in multiples of 16 models. The corporate is not going to obtain any proceeds from the OFS a part of the problem. The online proceeds of the Star Well being and Allied Insurance coverage Firm IPO will probably be used to reinforce the capital base, thereby sustaining the solvency ranges of the corporate.
Star Well being and Allied Insurance coverage Firm IPO Valuation and Subscription Standing
The IPO is valued at 14.9x FY21 guide worth, which appears to be like to be at a major
premium in comparison with ICICI Lombard and New India Assurance, which amongst
the listed house have gotten presence within the medical health insurance enterprise. So, a lot of the brokerage homes advisable to subscribe Star Well being IPO with warning and for long run acquire.
Star Well being IPO was subscribed 20 per cent on the second day of bidding, backed by the retail buyers. Majority of the bids have come from retail buyers, who’ve solely a 10 per cent quota within the IPO as in opposition to 35 per cent. The corporate earlier stated it had raised a bit of over ₹3,217 crore from anchor buyers forward of its IPO.
Star Well being and Allied Insurance coverage IPO Gray Market Premium:
The gray market premium of Star Well being and Allied Insurance coverage was quoted at Rs 15 on December 2, in keeping with IPO Watch. The unlisted shares of Star Well being and Allied Insurance coverage was buying and selling at Rs 150 on November 24 within the gray market. Nevertheless, the Star Well being and Allied Insurance coverage IPO GMP dropped considerably within the final one week.
Star Well being and Allied Insurance coverage IPO: Firm Profile
Integrated in 2006, Star Well being and Allied Insurance coverage Firm Ltd (Star Well being) is without doubt one of the largest personal well being insurers in India with a market share of 15.eight per cent in Fiscal 2021. The corporate primarily focuses on the retail well being market phase. It gives a variety of versatile and complete protection choices for retail well being, group well being, private accident, and abroad journey, accounting for 87.9 per cent, 10.5 per cent, 1.6 per cent, and 0.01 per cent, respectively, of the full Gross Written Premium (GWP) in Fiscal 2021. As of September 30, 2021, its community distribution contains 779 medical health insurance branches throughout 25 states and 5 union territories in India. Star Well being has additionally constructed one of many largest medical health insurance hospital networks in India with greater than 11,778 hospitals.
Star Well being and Allied Insurance coverage IPO: Do you have to Subscribe?
“As a result of covid pandemic, the notice in medical health insurance sector has elevated and the retail well being market phase is anticipated to emerge as a key progress driver for the general medical health insurance business in India. Well being Insurance coverage sector has a powerful optimistic outlook and since there are solely two listed normal insurance coverage corporations in India, ICICI Lombard and New India Insurance coverage, we anticipate Star Well being is an efficient possibility to speculate for long run,” stated Ravi Singh, head of analysis and vp at ShareIndia.
“Star Well being stands out amongst different standalone well being insurers (SAHI) when it comes to dimension, sturdy progress charges (32% Gross Written Premium CAGR over FY18-21) and higher operational efficiency which is mirrored in pre-Covid numbers for the corporate ( 93 per cent mixed ratio). The valuations commanded by Star Well being at 5.5x FY21 Mcap/GWP, are in-line with current offers within the SAHI house and seems truthful contemplating its positioning. Therefore, we suggest subscribe from a long-term perspective solely,” stated Amarjeet Maurya – AVP – mid caps, Angel One Ltd.