Ace Investor Rakesh Jhunjhunwala-Backed IPO Launching On This Date: Issue Price, Lot Size & More

The highly-awaited initial public offer of the ace investor Rakesh Jhunjhunwala-backed Star Health and Allied Insurance Company will be launched on November 30, 2021, with the offer closing on December 2. 

The company’s IPO comprises fresh issue of shares worth Rs 2,000 crore, along with an OFS of upto 5.83 crore equity shares by 11 shareholders, including promoter companies KONARK Trust, Safecrop Investments India LLP, and MMPL Trust.

The company has released its set price band on November 24, and you can find remaining details further in the article.

Star Health IPO Band 

The Rs 7,249.18 crore-worth IPO of Star Health has a fixed price band set of Rs 870-900/share. Investors can start subscribing to its public issue from Nov 30, until Dec 2.

The issue is expected to fetch the company an upper price band of Rs 7,249.18 crore, marking the third largest IPO size in 2021.

The net proceeds would be used for augmenting the capital base of the company, and maintaining solvency levels.

Investors can bid for a minimum of 16 equity shares and in multiples of 16 shares thereafter. Retail investors can invest a minimum of Rs 14,400 for a single lot, and their maximum investment would be Rs 1,87,200 for 13 lots, states Moneycontrol.

Safecrop Investments, Largest Shareholder in the Company

Ace investor Rakesh Jhunjhunwala, WestBridge AIF I, and Safecrop Investments India LLP currently hold a shareholding of 66.2% in the company, with the ace investor and his wife Rekha Jhunjhunwala combinedly standing as the second largest shareholder in the company.

The Limited Liability Partnership firm, Safecrop Investments holds the highest shares of the company, with a 44.77% stake in the company.

The book running lead managers to the issue are Kotak Mahindra Capital Company, Axis Capital, BofA Securities India, Citigroup Global Markets India, ICICI Securities, CLSA India, Credit Suisse Securities (India), Jefferies India, Ambit, DAM Capital Advisors, IIFL Securities, and SBI Capital Markets.

Source: Moneycontrol