Insurance Boom: These 3 Insurance IPOs Will Raise Rs 10,000 Crore (Full Details Inside)

About Rs 70,000 crore have been raised through only the IPO market this year, with more than 40 companies launching their IPOs.
About Rs 70,000 crore have been raised through only the IPO market this year, with more than 40 companies launching their IPOs.

Three companies from the insurance sector are on their way to boom into the primary market with IPOs worth Rs 10,000 crore.

PB Fintech, Star Health & Allied Insurance Company and Medi Assist Healthcare Service will be launching their initial public offerings in the upcoming months, as they have already filed respective draft prospectus with the market regulator SEBI.

About Rs 70,000 crore have been raised through only the IPO market this year, with more than 40 companies launching their IPOs.

The high volumes of IPO proceedings have declared this year as the ‘best-ever’ for IPOs, as stated by investment bankers.

Three Insurance Cos to Launch IPOs

This year has been a haven for the IPO market. Four months into the year-end and already 40 companies have hit the market so far, raising a whopping Rs 70,000 crore.

In August itself, five companies launched their listings, while about 24 other companies filed their IPO papers this month, accounting for Rs 4,000 crore.

Now, seeking to mop up over Rs 10,000 crore, three insurance sector companies, among the best in their fields, are preparing to enter the initial public offerings in the upcoming months.

They have already filed their draft prospectus with Sebi.

These three companies are:

  • PB Fintech, which is the parent company of Policybazaar, an online insurance lender. It plans to raise Rs 6,017 crore and is backed by Tiger Global and Tencent Holdings.
  • Star Health, which is the largest standalone private health insurer, backed by Rakesh Jhunjhunwala and Westbridge Capital, plans to raise Rs 3,000 crore.
  • Medi Assist, the largest and the most popular TPA (third-party administrator), has plans to raise about Rs 840-1,000 crore.

PB Fintech filed the draft red herring prospectus with Sebi on August 4, while Star Health on July 28 and Medi Assist on May 11.

Breakdown of Shares

PB Fintech

PB Fintech penetrates deeply into the highly underpenetrated online insurance and lending markets through Policybazaar and into the digital insurance marketplace, through the online lending platform Paisabazaar.

Paisabazaar holds 93.4% of the market share of the digital insurance marketplace, based upon the number of policies sold. 

In FY2020, Policybazaar alone accounted for 65.3% of all digital insurance sales by volume.

PB Fintech’s target of Rs 6,017.5-crore public issue is segregated into Rs 3,750 crore fresh issues and an offer-for-sale (OFS) of Rs 2,267.5 crore by existing selling shareholders.

Star Health

The largest standalone private health insurer holds a market share of 15.8% in the health insurance market in 2021.

Its IPO will consist of fresh issue of shares worth Rs 2,000 crore and OFS worth 60.1 million shares by shareholders.

Medi Assist

It is India’s largest and most popular TPA, based upon revenue size and premium services.

It is the third-party administrator for almost all the large hospital chains in the country, like Apollo Hospitals, Manipal Hospital, Fortis Healthcare, Narayana Hrudayalaya and Max Healthcare, among others. It’s services are used by over 11,000 hospitals across 722 cities and towns.

Medi Assist’s IPO will be made up of only OFS of 2,539,092 shares by Vikram Jit Singh Chatwal, Medimatter Health Management, Bessemer Health Capital LLC, and Investcorp Private Equity Fund I, states Moneycontrol.

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