Ahead of Tuesday’s initial public offering (IPO), Star Health and Allied Insurance said on Monday it has raised a little over ₹3,217 crore from anchor investors.
As per a circular uploaded on the BSE’s website, Star Health has decided to allocate 3,57,45,901 equity shares to 62 anchor investors at ₹900 apiece, aggregating to ₹3,217.13 crore.
The anchor investors include the government of Singapore, Abu Dhabi Investment Authority, Morgan Stanley Asia (Singapore) Pte, Goldman Sachs (Singapore) Pte among others.
Apart from the above stakeholders, SBI Life Insurance Company, HDFC Life Insurance Company and Edelweiss Mutual Fund have also been allotted shares.
Star Health’s IPO consists of a fresh equity issue of shares worth ₹2,000 crore and an offer for sale of up to 58,324,225 equity shares by promoters and existing shareholders, news agency PTI reported. The IPO will open on November 30 and close on December 2.
The public offer of the Chennai-based health insurance company also includes a reservation of shares of ₹100 crore for employees. Star Health is planning to be listed on the BSE and the National Stock Exchange (NSE) on December 10.
“We view STAR’s valuations at 8.2x Sep 2021 BV favourably in comparison to similar levels for ICICI Lombard, as we expect STAR to continue to grow at much higher growth rates while maintaining decent ROE in the post-Covid era. We recommend subscribing to the issue from a long term perspective,” Nirmal Bang said in an IPO note, according to a report by Live Mint on Tuesday.
The company is owned by a consortium of investors like Westbridge Capital and Rakesh Jhunjhunwala.
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