The Initial public offering of Rs.7,247 crore Star Health and Allied Insurance Co. Ltd, was subscribed 0.12 times on the upper band of Rs.900 on day one from non institutional investors and retail investors.
The first bid would net Rs.478 crore for 53 lakh bids, said the officials in a regulatory filing.
Star is the leading private health insurer in the country and it is backed by ace investor Rakesh Jhunjhunwala. Mr. Jhunjhunwala and other promoters would continue to stay in the company for a long period, said the company officials during a recent interaction.
“Starting with a humble share capital of Rs.108 crore, today Star Health has entered the capital market to garner about Rs.7,249 crore to maintain its solvency level and to keep its flag flying high,” V. Jagannathan, executive chairman told The Hindu.
Asserting that they had collected over Rs.9,000 crore in Gross Written Premium during last fiscal, he said “this describes our growth story.”
To a question about the initial response to the issue, he said: “We are dealing with customers. We offer them good service. The attrition rate in our company is minimum as we follow a “family culture”. Each and every employee have been giving their best.”
The company’s motto is to stand with customers and offer the best services. It has 1,000 offices in different parts of the company and is ably supported by five lakh agents, 10,000 employees and 450-500 doctors, he added.
Star Health’s IPO comprises fresh issue of equity shares worth Rs.2,000 crore and an offer for sale of shares by promoters and existing shareholders. The shares are offered in the price range of Rs.870 to Rs.900.
