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Star health IPO Review-

                      Star Health

Star Health and Allied Insurance Company limited is coming up with an IPO on 30th Nov 2021 to raise Rs 7,249 crore, the offer comprises fresh issue of Rs 2,000 crore and an offer for sale of Rs 5,249 crore by the existing stakeholders. The subscription window will close on 2nd Dec 2021. Price band for each share is fixed at Rs 870 to Rs 900. Face value of each share is Rs 10. Retail investor can apply for minimum and maximum, 16 shares and 208 shares, respectively. Allotment of shares will get initiated on 7th Dec 2021 and shares will get listed on the market on 10th of Dec 2021.

About Company

Star Health and Allied Insurance Company limited is a Chennai based health insurance company, the company offers range of services in health, and insurances. Star health is the largest private health insurer in India with a market share of 15.8% in the Indian health insurance market in FY 2021. In fiscal year 2021, company insured more than 2 crore people. The company has also built one of the largest health insurance hospital networks with more than 10,870 hospitals. As of September 2021 Company has 779 health insurance branches spread across 25 states and 5 union territories. This company is backed by one and only Rakesh Jhunjhunwala, Rakesh Jhunjhunwala acquires 15% stakes of the company.

Strengths of the company

  • Largest private health insurance company in India with leadership in the attractive retail health segment.

Company has strong hold in retail health insurance segment, for FY 2021 this segment amounted to 89.3% of its total health GWP (Gross written premium)

  • Largest network distribution in the health insurance industry.

Company has more than 3.5 lakh individual agents and 562 sales managers’ station and over 6,892 in-house sales managers.

  • Strong risk management with superior claims ratio and quality customer services.
  • Diversified product offering

Company offers a range of flexible and comprehensive options primarily for retail health, group health, personal accident and overseas travel

  • Demonstrated track record of operating and financial performance.
  • Backed by strong investors including Rakesh Jhunjhunwala, he acquires 15% stakes of the company and not selling his stakes in offer for sale.

Financials of the company

Company has seen drastic fall in PAT after fiscal 2020


       FY 2019

       FY 2020

       FY 2021





Total Assets




Total Revenue








All amounts is in INR crore

Peers of the Company

Company has 2 listed peers-


       PAT (Profit After Tax)

     RoNW (Return on Net Worth)

ICICI Lombard

      Rs 1,473  crore


New India Insurance

      Rs 1,628 crore



Risk Factors

  • Company has seen significant changes on PAT and revenue, company’s revenue and (PAT) profit after tax for the 6 months ended September 2021 was – Rs  27 crore and  – Rs 494.68 crore.
  • Company’s peers are very strong, and are profitable


The IPO aims to utilize the net proceed to increase the company's capital base and to pay certain debt.

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