Rakesh Jhunjhunwala who supports Star Health & English Incorporated Company Incorporated in 2006, will launch the first IPO in the coming week. This is one of the largest private health insurance companies in India with a market share of 15.8 percent in the fiscal year 2021.

Here are 10 main things to know before subscribing public problems:

1) IPO Date

This offer will open to subscribe on November 30 and the last date for subscribing to the offer arranged for December 02 2021.

2) ribbon Price

Band Prices for Indian Safecrop Investment Offers, Westbridge and Ace Investor Rakesh Jhunjhunwala-Promoted Company have been repaired at Rs 870-900 per share.

3) Offer details

Star health aims to mobilize Rs 7,249.18 through this IPO consisting of the issuance of fresh shares worth Rs 2,000 Crore and offers for sale 5.83 crore shares by several shareholders.

Through OFS, promoter of Safecrop Investments India LLP will dismantle 3.07 crore shares. The Konark Trust and MMPL group promoter group will be diluted by 1.38 LAC and 9.5K each.

Among other shareholders, Fire Growth 6 will sell 76,80,371 Equity Stocks, Mio IV Star & Mio Star will collect 41.10.652 Equity shares respectively, and Notre Dame Du Lac University will sell 74,38,564 equity shares through.

Furthermore, ROC Capital Pty Limited will sell 25,09,099 Equity Stocks, VenkataSamy Jagannathan 10 Equity Shares Lakh, Sai Satish 5 Lakh Stock, and Dainy Minoo Desai will collect 1.44 Lakh equity shares.

This offer includes stock reservations worth RS 100 Crore for company employees. Anchor book, if any, can be opened for a day on November 29, the day before the opening of the IPO.

4) The purpose of the problem

Star Health will take advantage of clean results from fresh problems towards the agmentation of his capital base and maintenance level of solvency.

5) Lot size and parts ordered by investors

Investors can bid at least 16 equity shares and in multiples of 16 shares afterwards. Retail investors can invest at least RS 14,400 for one lot, and their maximum investment is Rs 1,87,200 for 13 lots (208 shares of equity).

6) Profile and industry company

Star Health With a market share of 15.8 percent is the largest private health insurance company in the Indian health insurance market, according to report from Crisil’s research. In FY21 and the first half of FY22, has a total premium written gross (GWP) from Rs 9,348.95 Crore and Rs 5,069.78 Crore, respectively.

The company offers a variety of flexible and comprehensive coverage options, especially for retail health, group health, personal accidents, and foreign trips. Retail health and group health contributed 87.9 percent and 10.5 percent of the total GWP in FY21.

Retail health insurance will be the main growth driver for the health insurance industry in India, especially after Covid pandemics. Health insurance penetration in India is still one of the lowest in the world and only 10 percent of the population that has an insurance policy outside the government’s plan. Also, higher health care costs will encourage people to go for future health insurance.

7) Finance

The company’s performance has been greatly affected by Covid-19 which has resulted in higher claims and deteriorating solvency ratios for the company.

Covid-related insurance claims almost doubled compared to non covid claims. From net paid claims for the company, 30 percent of the claims were caused by a pandemic that increased further to 41 percent as the severity of the pandemic increased with the second wave.

As a result, the net claims ratio issued increased from 64.2 percent and 65.8 percent on FY19 and FY20 each of up to 87 percent in FY21. For H1 FY22, this ratio reached 88.2 percent compared to 60.3 percent on H1 FY21.

Pandemic Covid-19 is one of the main reasons for the company that reported the operating loss of RS 1,071.2CR in FY21 compared to hospital profits. 360.8CR on FY20. The solvency ratio decreases from 2.2x to FY21 to 1.52x on H1 FY21, (as to 1.5x regulation requirements).

8) the main risk

Every unfavorable change in government policies and regulations can have a negative impact on company performance.

Such companies and industries continue to face the risk of Covid-19 pandemic and a further revival of cases in this country will bring more damage to this sector and the company may find it difficult to maintain profitability.

“Unprofitable movements in interest rates, intense competition from other players and the inability to manage hospital networks and distribution channels”, also some major risks faced by the company in accordance with brokerage companies, Choice Broking.

9) Promoter & Management

At present, group promoters and promoters, including Rakesh Jhunjhunwala, Safecrop Investments India LLP and Westbridge AIF I currently hold 66.22 percent of shares in the company and the remaining 33.78 percent share ownership is held by public shareholders.

Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala have 18.21 percent of the shares in the company, while Safecrop Investments India LLP is the main shareholder with 47.77 percent of the shares.

Post-IPO The promoter shareholders will drop to 58.30 percent while holding the public will increase from now on 33.78-41.70 percent.

Company management

VenkataMy Jagannathan is the chairman and CEO of the company and previously worked with an insurance company United India in the capacity of the executive director chairman cum.

Subbarayan Prakash is the company’s executor director. He has experience several years as a surgeon in general operation / traumatology.

Anand Shankar Roy is the company’s implementing director and previously worked with the service related to American Express travel and ICICI Lombard General Insurance Co. Ltd.

Sumir Chadha, Deepak Ramineedi and Utpal Hemendra Sheth are Director of Nonine Executive Company.

Rohit Bhasin, Anisha Motwani, Deis Minoo Desai, Kaarthikeyan Devarayapuram Ramasamy, Rajni Sekhri Sibal and Rajeev Krishna Murari Lal Agarwal is the Independent Director of the Company.

Main managerial personnel

Cambli Nilesh is CFO Company and previously worked with Bharti AXA General Insurance Co. Ltd, Citicorp Finance (I) Ltd. and ICICI Lombard General Co. Ltd. He joined the company as CFO in 2020.

Aneesh Srivastava is the head of the company’s main investment. He previously worked with Bajaj Allianz Life Insurance Co. Ltd, IDBI Fortis Life Insurance Co. Ltd., India Advisory Partners Pvt Ltd and Sahara India.

Jayashree Setsuraman is the company’s Secretary and Company Compliance Official.

10) GMP, date of registration & allotment

The gray market premium for the IPO is currently at 10 per share according to the IPO watch.

Stock allotment will be completed on December 7, 2021 and the failed investors will get a refund in their bank account on December 8 while successful investors will get shares in their Demat account on December 9.