Star Health
Mainboard₹6,019 Cr issue
-5.69%
Listing gain over issue price
Issue size
₹6,019 Cr
1 lot at cut-off
₹14,400
Lot size
16shares
Open
30 Nov 2021
Close
02 Dec 2021
Allotment
07 Dec 2021
Listing
10 Dec 2021
Listing performance
Issue price
₹900
Listed at
₹848.80
Listing-day close
₹906.85
Latest price
₹530.35
Close on 23 Oct 2026
Listing gain
-5.69%
Return since issue
-41.07%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 30 Nov 2021 – 02 Dec 2021
- Listing date
- 10 Dec 2021
- Face value
- ₹10 per share
- Issue price
- ₹900 per share
- Lot size
- 16 shares
- Total issue size
- ₹6,019 Cr
- Market cap at offer price
- ₹51,797 Cr
- Promoter holding
- 66.22% → 58.42% pre-issue → post-issue
- ISIN
- INE575P01011
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Ambit Pvt.Ltd.
- Registered office
- No.1, New Tank Street, Valluvarkottam High Road, Nungambakkam, Tamil Nadu
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 3,57,45,901 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 16 shares per lot, in multiples, at ₹900
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 16 | ₹14,400 |
| Retail (max) | 13 | 208 | ₹1,87,200 |
| S-HNI (min) | 14 | 224 | ₹2,01,600 |
| S-HNI (max) | 69 | 1,104 | ₹9,93,600 |
| B-HNI (min) | 70 | 1,120 | ₹10,08,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
3,57,45,901
Anchor portion
₹3,217 Cr
at ₹900 per share
Valuation and performance
Valuation at offer price
₹900 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹51,797 Cr |
About Star Health
Star Health and Allied Insurance Company Limited is incorporated as a public limited company under the Companies Act, 1956 on June 17, 2005, with its registered office in Chennai, Tamil Nadu. The company is the largest private health insurer and largest retail health insurance company in India according to CRISIL Research. As of Fiscal 2021, it had GWP of ₹93,489.50 million and insured 20.5 million lives through retail health (89.3%) and group health (10.7%) products. The company generates revenue through premium income from health insurance policies covering individuals, families, students, senior citizens, and persons with pre-existing medical conditions, primarily targeting the middle market segment. The company operates through a distribution network including individual agents (77.0% of policy distributions in six months ended September 30, 2021), brokers, insurance marketing firms, web aggregators, telemarketers, and bancassurance partners.
Company Analysis
from RHPStar Health is India's largest private health insurer offering comprehensive retail and group health insurance products across multiple customer segments.
Star Health and Allied Insurance Company Limited is incorporated as a public limited company under the Companies Act, 1956 on June 17, 2005, with its registered office in Chennai, Tamil Nadu. The company is the largest private health insurer and largest retail health insurance company in India according to CRISIL Research. As of Fiscal 2021, it had GWP of ₹93,489.50 million and insured 20.5 million lives through retail health (89.3%) and group health (10.7%) products. The company generates revenue through premium income from health insurance policies covering individuals, families, students, senior citizens, and persons with pre-existing medical conditions, primarily targeting the middle market segment. The company operates through a distribution network including individual agents (77.0% of policy distributions in six months ended September 30, 2021), brokers, insurance marketing firms, web aggregators, telemarketers, and bancassurance partners.
Health InsuranceGeneral InsuranceRetail Insurance
Objects of the Issue
- Augmentation of capital base and maintenance of solvency levels ₹20,000 million p.18
- Augment capital base and maintain solvency levels ₹20,000 million from Fresh Issue p.55
- Augmentation of capital base and maintenance of solvency levels ₹19,614.25 million p.104
Issue Structure
- Total Issue
- ₹64,004.39 million
- Fresh Issue
- 22,232,230 Equity Shares aggregating ₹20,000 million
- Offer for Sale
- 48,893,767 Equity Shares aggregating ₹44,004.39 million
- Price Band
- ₹870 - ₹900 per Equity Share
- Lot Size
- 16 Equity Shares and in multiples of 16 Equity Shares thereafter
- Face Value
- ₹10 per Equity Share
Business Model
The company earns revenue through gross written premium (GWP) from health insurance policies sold to retail and group customers. The business model is based on premium income, with the company underwriting health insurance risks and managing claims. Investment income is generated from its investment portfolio, which as of September 30, 2021 comprised 98.4% fixed income assets and mutual funds, and 1.6% equity markets/listed securities/ETFs.
Business Segments
Health insurance products targeting individuals, families, students, senior citizens, and persons with pre-existing medical conditions across the middle market segment
Health insurance products for groups and corporate customers
Health and personal accident insurance products
Individual and family health insurance policies sold through agents, direct channels, and digital platforms to consumers for personal health coverage
Employer-sponsored health insurance plans covering employees of organizations and corporate groups
Health insurance coverage under government-sponsored health insurance schemes such as Pradhan Mantri Jan Aarogya Yojana (PMJAY) and related programs
Provides health insurance coverage to private individuals and families through out-of-pocket expenses or private insurance, targeting individuals, families, students, senior citizens, and persons with pre-existing medical conditions.
Provides health insurance policies to employees of corporates, including SMEs, through company health insurance plans with selective focus on SMEs.
Provides benefit-based coverage to policyholders for accidents suffered by them.
Provides health insurance assistance for foreign travel through three plans available to permanent residents in India, corporate executives abroad for business purposes, and students studying abroad.
The company underwrites health insurance policies covering medical, personal accident, and related risks on a direct basis.
Fire insurance business for property and related coverage.
Marine insurance business including marine cargo and marine hull coverage.
Retail and group health insurance products providing coverage for hospitalization, treatment, and related medical expenses
Personal accident insurance providing coverage for accidental injuries and related claims
Individual health insurance policies offered to consumers
Health insurance for groups, primarily targeting SMEs through broker channel
Personal accident insurance coverage
SWOT Analysis
Strengths
- • Largest private and retail health insurer in India(p.18)
- • Comprehensive product portfolio across diverse customer segments(p.18)
- • Strong brand recognition and market reputation(p.32)
- • Large agreed network hospital base(p.37)
- • Significant agent distribution network(p.39)
- • Largest private health insurance company in India with retail health segment leadership(p.109)
- • Well-spread distribution network integrated with ecosystem(p.109)
- • Innovative product suite with specialized offerings(p.109)
- • Superior risk management and claims ratio driven by domain expertise(p.109)
- • Significant technology investment and innovative business processes(p.109)
- • Demonstrated superior operating and financial performance(p.109)
- • Strongest retail business market share among SAHIs(p.144)
- • Largest retail agent network among health insurers with 462,502 agents(p.142)
- • Market leadership in retail health insurance(p.164)
- • Dominant individual agents distribution network(p.164)
- • Extensive hospital network with negotiated pricing(p.165)
- • Strong in-house claims management capabilities(p.165)
- • Experienced senior management with deep industry expertise(p.170)
- • Superior claims efficiency and quick settlement(p.156)
- • Lowest expense ratio among SAHI peers(p.156)
- • Largest number of new product approvals(p.162)
- • Advanced digital capabilities and multi-channel integration enabling seamless customer experience(p.189)
- • Rapid growth in digital policy issuance and online GWP acquisition(p.188)
- • Strong brand recognition and award-winning reputation in health insurance(p.191)
- • Experienced and stable senior management team with deep insurance expertise(p.189)
- • Comprehensive technology platform across front, middle and back office operations(p.188)
- • Extensive branch network and geographic coverage(p.189)
- • Comprehensive committee structure for governance and risk management(p.230)
- • Dedicated risk management oversight through specialized Risk Management Committee(p.230)
- • Strong focus on policyholder protection and customer service standards(p.229)
- • Experienced senior management team across multiple functions(p.235)
- • Strong premium growth in retail and group health segments(p.366)
- • Growing investment assets and income generation capability(p.366)
- • Successful capital raising and strengthened solvency position(p.371)
Weaknesses
- • Recent losses and negative profitability(p.33)
- • High dependence on retail health insurance segment(p.37)
- • Solvency ratio compliance challenges in the past(p.35)
- • Inadequate loss reserves requiring significant additions(p.33)
- • Significant exposure to fraud and misconduct(p.38)
- • Outstanding litigation and regulatory proceedings(p.40)
- • Regulatory non-compliance and IRDAI enforcement actions(p.40)
- • Past failure to comply with IRDAI Expenses of Management Regulations(p.55)
- • Inability to trace certain corporate documents and IRDAI approvals(p.55)
- • Negative cash flows in operating activities(p.47)
- • Significant debt obligations with restrictive covenants(p.45)
- • Promoters lack adequate experience and active business participation(p.52)
- • Concentration of business in two states(p.57)
- • Majority of operations on leased premises with expiring leases(p.51)
- • Recent operating losses with negative earnings per share(p.109)
- • Declining return on net worth in recent periods(p.110)
- • Increasing claims ratio pressuring profitability(p.140)
- • Operating expenses as proportion of gross premium remains elevated relative to competitors(p.138)
- • Concentration of promoter shareholding post-IPO(p.94)
- • Significant deterioration in combined ratio in FY2021(p.170)
- • Negative ROE in FY2021 due to exceptional charges(p.159)
- • Heavy dependence on individual agents distribution(p.177)
- • Increased COVID-19 claims impact on profitability(p.170)
- • Elevated claims ratio compared to historical levels(p.157)
- • Selective approach to unprofitable group health segment(p.167)
- • Concentration of operations through leased branches with no owned properties(p.189)
- • Concentrated employee base with limited mid-management depth(p.189)
- • Pending trademark registration with opposition notices(p.190)
- • Significant operating losses in recent periods(p.257)
- • Negative net worth position on balance sheet(p.258)
- • High claims incurred relative to premiums earned(p.256)
- • Large reserve for unexpired risks creating provision burden(p.277)
- • Dependence on specific market segments(p.295)
- • Significant operating loss in recent periods due to COVID-19 claims(p.364)
- • Substantial increase in claims incurred straining profitability(p.363)
- • Material loss after tax in recent fiscal year(p.365)
- • Negative cash flow from operating activities in recent period(p.372)
- • High provisions for doubtful debts(p.367)
Opportunities
- • Underpenetrated health insurance market with significant growth potential(p.18)
- • Expansion in semi-urban and rural markets(p.29)
- • Technology and digitization investments(p.35)
- • Expansion of agreed hospital network to improve cost efficiency(p.37)
- • Growing health insurance market and specialised premium products(p.48)
- • Tailored products for geographies including rural regions(p.48)
- • Digital distribution and online platforms expansion(p.46)
- • Electronic policy processing growth(p.42)
- • Massive retail health insurance market growth potential at 23% CAGR(p.132)
- • Expansion opportunity in underpenetrated retail segment from government-sponsored schemes(p.132)
- • Overall health insurance market projected to nearly double to ₹1,150 billion by Fiscal 2025(p.131)
- • Rising per capita income and household disposable income growth(p.134)
- • Vast untapped agent network potential with only 3 of 10 life insurance agents selling health insurance(p.142)
- • Low health insurance penetration at 0.4% of GDP versus global average of 2%(p.125)
- • High out-of-pocket healthcare expenditure at 63% provides insurance adoption rationale(p.126)
- • Huge untapped potential in underpenetrated retail health market(p.164)
- • Demographic tailwinds driving health insurance growth(p.164)
- • Retail segment emerging as key growth driver(p.164)
- • Superior profitability in retail vs. group and government segments(p.164)
- • Expansion opportunity in SME group health segment(p.172)
- • Growing market awareness post-COVID-19(p.164)
- • Expansion through digital and alternate distribution channels(p.171)
- • Rural market penetration with improving infrastructure(p.173)
- • Expansion of telemedicine and digital health services(p.206)
- • Growth in online distribution channels with significant website traffic(p.188)
- • Regulatory expansion permitting increased foreign investment in insurance sector(p.192)
- • Mandate for insurance provision in rural and social sectors creating addressable market(p.197)
- • Expansion through dedicated rural and social sector focus(p.295)
- • Growth in investment portfolio allocation across asset classes(p.268)
- • Enhanced investment income generation through diversified portfolio(p.269)
- • Premium growth targeting across multiple customer segments(p.260)
- • Expansion of life and health insurance offerings(p.279)
- • Expansion of agent network and distribution channels(p.363)
- • Growing group health and SME market segment(p.366)
- • Digital transformation and technology investments for policy administration(p.371)
Threats
- • COVID-19 pandemic significantly increasing claims and costs(p.30)
- • Catastrophic events and pandemics creating unpredictable liabilities(p.34)
- • Regulatory changes and solvency requirements(p.35)
- • Aggressive competition in group health segment(p.37)
- • Interest rate fluctuations affecting investment returns(p.39)
- • Rising medical and healthcare inflation(p.36)
- • Regulatory restrictions on advertising and marketing(p.32)
- • Intense competition from non-life insurers, standalone health insurers, banks, and digital aggregators(p.40)
- • Competitor consolidation providing enhanced competitive strengths(p.40)
- • Regulatory changes and complex compliance environment(p.49)
- • Restrictions on ability to cancel health insurance policies and modify pricing(p.45)
- • Mandatory rural and social sector obligations at lower premiums(p.44)
- • Reinsurance availability and cost volatility(p.54)
- • Reinsurer credit risk and enforcement challenges(p.54)
- • Dependence on critical service providers and technology infrastructure(p.42)
- • Cyber attacks and data security breaches(p.48)
- • Macroeconomic risks and Indian economic slowdown(p.57)
- • Pandemic and epidemic risks including COVID-19(p.57)
- • Political instability and regional conflicts(p.57)
- • Elevated COVID-19 claims impacting profitability in near term(p.131)
- • Potential future pandemic waves creating systemic claims risk(p.120)
- • Group and government business segments facing declining demand(p.131)
- • Intense competitive pressure from growing SAHI market share(p.136)
- • Regulatory solvency capital requirements constraining growth(p.105)
- • Healthcare inflation consistently exceeding general inflation(p.127)
- • Regulatory uncertainty regarding mandatory health insurance provisions and product mandates(p.129)
- • Intense competition from private insurers and public sector(p.145)
- • Aggressive pricing in group health segment(p.167)
- • Regulatory changes affecting health insurance(p.187)
- • Risk of inadequate claims reserves(p.182)
- • Dependence on accuracy of underwriting information(p.186)
- • Potential negative impact of major pandemic events(p.186)
- • Credit risk from investment counterparties(p.186)
- • Exposure to market risks including interest rate and equity fluctuations(p.186)
- • Intense competition from 31 other public and private-sector non-life/health insurers(p.189)
- • Stringent regulatory capital requirements and solvency margin mandates(p.195)
- • Restrictions on expense management and commission payments by IRDAI(p.197)
- • Regulatory oversight limiting dividend payouts and requiring capital conservation(p.206)
- • Complex regulatory compliance requirements for product filing and underwriting(p.195)
- • Regulatory changes in accounting and reserve requirements(p.279)
- • Reinsurance treaty discontinuation limiting risk management options(p.291)
- • Claims inflation and medical cost increases(p.246)
- • Tax disputes and contingent liabilities(p.292)
- • Outstanding claims aging creating liquidity pressure(p.261)
- • Significant COVID-19 claims burden and health crisis impact(p.366)
- • Regulatory constraints on promoter shareholding and capital raising(p.394)
- • Seasonal fluctuations in insurance volumes impacting cash flows(p.374)
- • Significant outstanding litigation and tax disputes(p.388)
- • Material ESOP grants creating profitability pressure(p.374)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Safecrop Investments India LLP | Promoter/Promoter Selling Shareholder | 47.77% | 45.92% |
| WestBridge AIF I | Promoter | — | — |
| Rakesh Jhunjhunwala | Promoter | 14.98% | 14.40% |
| Safecrop Investments India LLP | Promoter | — | — |
| Safecrop Investments India LLP | Promoter | 47.77% | 45.92% |
| Rakesh Jhunjhunwala | Promoter | 14.98% | 14.40% |
| Rekha Rakesh Jhunjhunwala | Promoter Group | 3.23% | 3.10% |
| Konark Trust | Promoter Group | 0.22% | 0.22% |
| MMPL Trust | Promoter Group | 0.02% | 0.01% |
| Rakesh Jhunjhunwala | Promoter | — | — |
| Safecrop Investments India LLP | Promoter Group | — | — |
| WestBridge AIF I | Promoter Group | — | — |
| Safecrop Investments India LLP | Promoter | — | — |
| Rakesh Jhunjhunwala | Promoter | — | — |
| Rakesh Jhunjhunwala | Promoter | 14.98% | — |
| Safecrop Investments India LLP | Promoter (Corporate Promoter / Special Purpose Vehicle) | 47.77% | — |
| WestBridge AIF I | Promoter (Alternative Investment Fund holding 99.99% partnership interest in Safecrop) | — | — |
| Safecrop Investments India LLP | Promoter | — | — |
| Westbridge AIF I | Promoter | — | — |
| Rakesh Jhunjhunwala | Promoter | — | — |
| Rekha Jhunjhunwala | Promoter | — | — |
| Rakesh Jhunjhunwala | Promoter | — | — |
| Rekha Jhunjhunwala | Promoter | — | — |
Leadership
Venkatasamy Jagannathan · Chairman and CEO
Subbarayan Prakash · Managing Director
Anand Shankar Roy · Managing Director
Chandra Shekhar Dwivedi · Appointed Actuary
Jayashree Sethuraman · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Star Health IPO FAQs
What is the lot size of Star Health IPO?
The minimum lot size of Star Health IPO is 16 shares. One lot costs ₹14,400 at the cut-off price.
When does Star Health IPO open and close?
Star Health IPO opened for subscription on 30 Nov 2021 and closed on 02 Dec 2021.
What is the listing date of Star Health IPO?
Star Health IPO listed on 10 Dec 2021.