The Star Health IPO will go public on November 30

Star Health, backed by Rakesh Jhunjhunwala, will go public on November 30.

The much-discussed public offering consists of new equity shares worth 2,000 crores and an offer to sell up to 58,324,225 equity shares. The initial public offer (IPO) of Star Health, backed by Rakesh Jhunjhunwala, will open for subscription on November 30, 2021. The three-day initial public offering (IPO) will begin on November 30 and end on December 2, 2021.

The much-discussed public offering includes new equity shares worth 2,000 crores. And an offer for sale (OFS) of up to 58,324,225 equity shares by promoters and existing shareholders.

The promoter also promoter group Safecrop Investments India LLP, Konark Trust, MMPL Trust as well as existing investors Apis Growth 6 Limited. Mio IV Star, University of Notre Dame Du Lac, Mio Star, ROC Capital Pty Ltd, Venkatasamy Jagannathan, Sai Satish. And Berjis Minoo Desai are among those offering shares through the OFS route. Star Health has set a price range of 870-900 per share. With the initial share sale likely to raise Rs 7,249.18 crore at the upper end of the content.

The proceeds from the new offering will be utilize to boost the company’s capital base.

A group of investors, including Westbridge Capital and Rakesh Jhunjhunwala, own Star Health, a private health insurance company. Any adverse change in government policies and regulations can have a negative impact on the company’s performance.

The company and the industry as a whole continue to be at risk from the Covid-19 pandemic. And any further resurgence of cases in the country will cause more harm to the sector, making it difficult for the company to maintain profitability.

According to Choice Broking, a brokerage firm, “unfavorable movement in interest rates. Stiff competition from other players, and inability to manage hospital network and distribution channels” are a few of the significant risks faced by the company.