Jhunjhunwala-backed Star Health plans to raise Rs 7,000 crore through IPO: report

Jhunjhunwala-backed Star Health plans to raise Rs 7,000 crore through IPO: report

Jhunjhunwala-backed Star Health plans to raise Rs 7,000 crore through IPO: report

Indian health insurance provider Star Health and Allied Insurance Company aims to raise about $ 7 billion in its initial public offering, a banking source told Reuters on Wednesday.

With the support of renowned Indian investor billionaire Rakesh Jhunjhunwala, he raised Rs. 7,249 crore ($ 974.23 million) and set a price band between Rs 870 and Rs 900 per share, according to a booker’s document.

The offer will be open for subscription on November 30 and a number of companies, including reputed startups, have come out in public to take advantage of the boom in the Indian stock market due to the large liquidity and growing retail investor participation.

With full membership, Star Health’s IPO will be the third largest IPO after fintech firm Paytm and food-delivery firm Zomato, whose offers raised $ 2.46 billion and $ 1.26 billion, respectively.

According to its prospectus, the money will be used to improve the capital base and maintain the solvency level.

The company’s shares are expected to be listed on the Mumbai market around December 10 and Star Health will be the first insurance provider to go public in 2017.

Investors will be keeping a close eye on its offer subscriptions as Paytm’s disappointing debut last week has cast doubt on the upcoming IPO and raised concerns about overvaluation in the domestic equity market.

On Tuesday, Indian payment firm MobiKwik postponed its IPO plans due to the disappointing performance of Paytm.

BofA Securities, Citi, Kotak Mahindra Capital and Axis Capital are the book running lead managers for Star Health’s public offering.

(This story is not edited by Business employees and is automatically generated from a syndicated feed.)

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