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Star Health Insurance IPO to Launch

Star Health Insurance was founded in 2006 and it is currently one of India’s major private health insurance providers, claiming a 15.8% share of the market in 2021. The initial public offering of this Rakesh Jhunjhunwala-supported Star Health Insurance IPO opening will start for subscription on November 30 and will end on December 2.

This post will explain all you need to know about the forthcoming Star Health IPO. Let’s start with the basics. 

 

What is an IPO?

IPO (Initial Public Offering) is a process that enables private companies to become public by selling a portion of their shares to interested investors. This helps the corporation to obtain funds for future developments while also providing a much easier option for investors to sell their shares. Firms will develop a prospectus that provides all important data regarding the planned offering of stocks and makes it accessible to organizational investors, wealthy individuals (HNIs), and the public at large when they begin this procedure.

Following the publication of the prospectus, the firm’s stocks are listed and easily swapped on the market. The market requires a specified amount of unrestricted float on stocks, both in whole and as a proportion of the registered stock’s overall capital.

Star Health IPO Details

Star Health and Allied Insurance Company Limited (Star Health) is among India’s leading health insurance providers. The firm focuses largely on the retailer medical and group health insurance sections, which contributed around 89.3% and 10.7% of the gross GWP of the firm in 2021.

The firm mostly sells insurance through private agents, although it also has business agent banking institutions and other business agents on its roster.  As of September 30, 2021, its network in India had 779 medical insurance outlets spread across 5 union territories and 25 states. Star Health Insurance has also established one of India’s biggest medical insurance hospital networks, with over 11,778 facilities.

Competitive advantages:

  • The biggest private medical insurance firm in India, having a strong presence in the lucrative retail health category.
  • The medical insurance sector’s biggest network distribution holder.
  • A product suite that is diverse, with an emphasis on specialized services and innovation.
  • Excellent risk control, with a high claims ratio and excellent customer support.
  • A solid history of financial and operating excellence

 

Promoters of the Firm:

  • Westbridge AIF I
  • Safecrop Investments India LLP
  • Rakesh Jhunjhunwala

 

Objective:

The net proceeds from the Star Health IPO will be used to increase the firm’s capital structure and insolvency threshold.

Lot Size:

The marketplace lot size for the Star Health Insurance IPO is 16 shares. Individual retail investors can subscribe for a maximum of 13 lots i.e. 208 shares.

IPO Details:

Opening Date of IPO 30th November 2021
Closing Date of IPO 2nd December 2021
Type of Issue Book Build Issue
Face Value 10 INR/equity share
Price of IPO 870-900 INR/equity share
Marketplace Lot 16 shares
Minimum order amount 16 shares
Listed on NSE, BSE

 

Scheduled Timetable:

Opening Date 30th November 2021
Closing Date 2nd December 2021
Allotment Date 7th December 2021
Refund Initiation 8th December 2021
Shares are credited to a Demat account 9th December 2021
Listing Date 10th December 2021

 

How much should you invest?

If you understand the share market and can appropriately handle the risks associated with it, an IPO might be a fantastic way to make cash. An initial public offering is an opportunity to pick profitable businesses and engage at a cheap price in the stock of potential industry behemoths that will create considerable revenue from stock gains.

As a smart investor, you should engage in accordance with your risk tolerance and goals. Your risk distribution factor indicates that you are okay accepting financial chances. It is frequently influenced by strong external variables. Somebody with a large amount of wealth, a broad portfolio, and few commitments is unquestionably better equipped to withstand risk than somebody with less money and more obligations.

If you do have short-term objectives that you want to achieve in the upcoming 2-3 years, you may want to increase your investment amount. Similarly, if you do have long-term objectives that will be met in the upcoming 5-6 years, it is best to spend within your means and depend on stock returns. Nevertheless, in all cases, your budgeting plan for a wise IPO investment must be consistent with your risk tolerance.

Conclusion

If you’re not very familiar with financial investing, the idea of IPO investing might seem like something that is best left to professionals. But it doesn’t have to be so complicated. With a little bit of work, you can easily learn the basics of investing in IPOs of companies you feel are worthy of your money. Star Health is India’s one of the best health insurance companies, which is striving to simplify health care for Indians. Start your investment portfolio with the Star Health IPO.

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