Star Health and Allied Insurance Company Ltd is one of the market leaders in the insurance segment. It’s a tie up with more than 11600 Hospitals. The company’s insurance business is mainly into 2 streams i.e.Retail Health and Group[ health Segment. The business is spread across 25 states and 5 Union Territories. The market share of the company in the Private Health insurance segment is 15.8%.
IPO DETAILS
Star Health and Allied Insurance Company Ltd IPO is set to launch on 30th Nov., 2021. The subscription timeline extends till 2nd Dec, 2021. The size for the IPO is 7249.18 Crore Rs.. Shares issued through Fresh Issue are worth Rs. 2000 Crore. Shares issued through Offer for Sale are worth Rs. 5249.18 Crore. The lot size is 16 shares and the price range is 870 Rs. – 900 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs.10 and this is a book built issue. The registrar for the company is Karvy Fintech Private Limited.
TABULAR REPRESENTATION OF IPO DETAILS
| IPO OPENING DATE | 30th Nov, 2021 |
| CLOSING DATE FOR IPO | 2nd Dec, 2021 |
| ISSUE TYPE | Book Built Issue |
| Face Value per share | 10 Rs. per share |
| IPO price band | 870 Rs. – 900 Rs. |
| LOT SIZE | 16 shares |
| MINIMUM ORDER QUANTITY | 16 shares |
| ISSUE SIZE | 7249.18 Crore Rs. |
| OFFER FOR SALE | 5249.81 Crore Rs. |
| FRESH ISSUE | 2000 Crore Rs. |
| LISTING AT | NSE, BSE |
| LISTING DATE | 30th Nov, 2021 |
IMPORTANT DATES
| IPO OPENING DATE | 30th Nov, 2021 |
| CLOSING DATE FOR IPO | 2nd Dec, 2021 |
| IPO ALLOTMENT DATE | 7th Dec, 2021 |
| REFUNDS | 8th Dec, 2021 |
| DEMAT A/C CREDITED ON | 9th Dec, 2021 |
| IPO LISTING DATE | 10th Dec, 2021 |
The Star Health and Allied Insurance Company Ltd IPO begins for subscription from 30th Nov, 2021. The IPO subscription would continue till 2nd Dec, 2021. The allotment status for the shareholders who applied would come on 7th Dec, 2021. The refunds for the ones who did not get allotment would be initiated on 8th Dec, 2021. The DEMAT accounts of shareholders would be credited on 9th Dec, 2021. The listing of the company would be accompanied on 10th Dec, 2021.
Lead Managers And Promoters
The lead managers are :
- IIFL Securities Limited
- Ambit Private Limited
- BoFA Securities India Limited
- Axis Capital Limited
- Citigroup Global Markets India Private Limited
- Credit Suisse Securities (India) Private Limited
- CLSA India Private Limited
- Kotak Mahindra Capital Company Limited
- Jefferies India Private Limited
- SBI Capital Markets Limited
- ICICI Securities Limited
- DAM Capital Advisors Limited
The promoters for the Company are
The minimum lot size for the company is decided at 16 shares. This holding accounts to 14440 Rs.. The maximum lot size is decided at 208 shares. This amounts to Rs. 187200. Hence the company’s final holdings would be set as :
| Shares | Amount | |
| Minimum | 16 shares | 14440 Rs |
| Maximum | 208 shares | 187200 Rs |
OBJECTIVES FOR THE IPO
- The funds can be utilized for General corporate purposes.
- The company is under the heavy burden of insolvency and capital requirements. Hence the IPO money will help the company to survive through this cash crunch situation.
COMPANY FINANCIALS
| Particulars (in Million Rs.) | 2020-21 | 2019-20 | 2018-19 |
| ASSETS | 44665 | 18967 | 16426 |
| REVENUE | (-9077) | 4619 | 2262 |
| NET PROFIT | -8226 | 2681 | 1282 |
The company has a huge amount of assets under its name. The assets are close to 45000 Crore Rs. However what are they worth if the company is not able to generate sufficient profits and even positive revenue flow from it. The revenue is recorded negative for 2021 which signals that the company is not able to generate any revenue and has to go through some extreme situations in that year. However, what’s important is the stability of the company. The company is almost on the verge of insolvency and hence it is worth the risk to take. However in such a situation when the Indian Markets are falling constantly one should definitely stay away from such Companies in the initial stage of Listing.
PROS
- Tie ups with more than 16600 Hospitals
- Market share of 15.8% in the Indian Private Health Insurance Sector.
CONS
- The FInancials of the company are not at all good. They show constant red flags. Also the company is on the edge of insolvency due to liquidity and capital crisis.
Star Health and Allied Insurance Company Ltd IPO APPLICATION PROCESS WITH ZERODHA
It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :
- Logging into Zerodha console through its website or KITE platform.
- Clicking the IPO link present in the Portfolio section.
- Click the Star Health and Allied Insurance Company Ltd IPO button and press the BID button.
- Entering the details asked for like UPI ID, Quantity and price.
- Submit the application form for the IPO.
- Visiting the application of UPI for approving the transaction.
Now, applying for an IPO online is possible with most of the Discount and online brokers.
