Chennai-based Star Health Insurance, has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India to raise funds via an initial public offering (IPO).
The company is backed by ace investor Rakesh Jhunjhunwala and private equity firms Westbridge Capital and Madison Capital. According to media reports, the IPO consists of a fresh issue of Rs 2,000 crore and an offer for sale (OFS) of 60.10 million shares by existing promoters and shareholders.
The company has reserved 75 percent of the shares for qualified institutional buyers (QIBs) allocation and 15 percent shares are allocated to non-institutional bidders (NIIs). Retail investors will have the remaining 10 per cent allocation, according to The Economic Times.
Those offering shares through the offer for sale are promoter and promoter group --Safecrop Investments India LLP, Konark Trust, MMPL Trust-- and existing investors-- Apis Growth 6 Ltd, Mio IV Star, University of Notre Dame Du Lac, Mio Star, ROC Capital Pty Ltd, Venkatasamy Jagannathan, Sai Satish, and Berjis Minoo Desai.
Proceeds from the fresh issue would be used to augment the company''s capital base.
At present, SBI Life Insurance Company, HDFC Life Insurance Company, ICICI Prudential Life Insurance Company, and ICICI Lombard General Insurance Company are the few insurance companies that are listed on the stock exchanges.
Kotak Mahindra Capital Company, Axis Capital, BofA Securities India, Citigroup Global Markets India, ICICI Securities, CLSA India, Credit Suisse Securities (India) Private Limited, Jefferies India, Ambit, DAM Capital Advisors, and IIFL Securities are the merchant bankers to the issue.
The equity shares of the company will be listed on the BSE and NSE.
(With PTI inputs)
