Star Health IPO GMP, Listing, Review & Important Dates 2021
The Rakesh Jhunjhunwala-backed Star Health and Allied Insurance Company, Country’s biggest private health insurance firm with a 15.8% market share, aims to go public. The Star Health IPO (initial public offering) will take place in October 2021.
About
As per CRISIL Research, they have evolved from being the first standalone health insurance (“SAHI”) business formed in India in 2006 to becoming the biggest SAHI company in the total health insurance market in India.
In Fiscal 2021, its entire health insurance product suite insured 20.5 million people in retail health and group health, accounting for 89.3 percent and 10.7 percent of their overall health GWP, correspondingly.
In Fiscal 2021, they had a retail health GWP of INR 82,150.90 million and a total GWP of INR 93,489.50 million, indicating that they are primarily centered on the retail health market sector.
Retail Heathcare
Over the previous 3 fiscal years, they have continuously placed #1 in India’s retail health insurance industry based on retail health GWP.
Owing to reduced penetration of health insurance, strong out-of-pocket healthcare costs, and the fact that only 10% of the population has insurance policies beyond the government plans, the retail health market section is anticipated to arise as an important growth driver for the total health insurance sector in India following the COVID-19 emergency.
Their retail health GWP was more than three times that of the next biggest retail health insurance market player in Fiscal 2021, putting us in a strong position to continue to expand their company.
Business Strategies
Individual agents are the primary distributors of their health insurance, accounting for 78.9% of our GWP in 2021. Although health insurance is mainly an assistance product, consumers typically want assistance in picking the appropriate coverage for their requirements and during the claims process.
Individual agents are the major form of distribution in the health insurance business. As per CRISIL Research, they had the most individual agents across SAHI insurers as of December 31, 2020, with three times the number of salespeople as the next top SAHI firm.
From 0.29 million in Fiscal 2019 to 0.46 million in Fiscal 2021, their overall number of individual representatives rose at a CAGR of 27.3 percent.
Star Health IPO
Star Health Insurance, headquartered in mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of a fresh issue of Rs 2,000 crore, & an offer for sale(OFS) of up to 6,01,04,677 equity shares on 21 July, 2021.
There will be fresh issue of Rs 2,000 crore & OFS (Offer for sale) of 6,01,04,677 equity shares from existing Promoters mentioned in the DRHP of the company.
They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.
Originally published at https://profitmust.com on July 23, 2021.
