Rakesh Jhunjhunwala News : Star Health and Allied Insurance Company, owned by Rakesh Jhunjhunwala, has intensified preparations to bring IPO. The company has filed draft documents (DRHP) with SEBI for the IPO. Apart from Rakesh Jhunjhunwala, the company is also owned by afecrop Investments India LLP, WestBridge AIF I.
Star Health to raise capital of over Rs 2000 crore
According to DRHP, Star Health and Allied Health Insurance Company will raise funds of more than Rs 2000 crore through IPO. Under this, not only will new shares be issued, an offer for sale will also be brought for sale of stake of existing shareholders and some promoters. Under this, new shares worth Rs 2000 crore will be issued. At the same time, an offer for sale will be brought for the sale of 6.01 crore shares. This includes 3.06 crore shares of Safecrop Investments India LLP. Other shareholders who will sell their shares include Apis Growth 6 Limited, University of Notre Dame DU LAC, MIO IV Star, Sai Satish, Konark Trust, Berjis Minoo Desai, MMPL Trust.
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The fund will be used to increase the capital base
According to Crisil Research, Star Health is one of the largest health insurance companies in the private sector. It is the largest retail health insurance company in the country. Recently, Rakesh Jhunjhunwala’s Barbeque Nation and Nazara Technologies have also been listed in the stock market. The company will use the funds raised by issuing new shares to increase its capital base. Kotak Mahindra Capital Company Limited, BofA Securities India Limited, Citigroup Global Markets India Private Limited and ICICI Securities Limited will be the Global Coordinator and Lead Manager of the issue.
According to DRHP veteran investor Rakesh Jhunjhunwala is one of the three promoters of Star Health. He has 7.68 crore equity shares of the company, which is equal to 14 per cent stake in the company. His wife Rekha Jhunjhunwala holds 3.26 per cent stake in the company and is also a promoter. In March 2019, he bought the shares of this company at the rate of Rs 156.28 per share.