STAR HEALTH IPO Review & Recommendations @ Chanakyanipothi.com , India`s Oldest & most Trusted Investment Blog.Operational since 8th December 1999, this is the Only Investment Platform in India, which has successfully completed 21 Years
STAR HEALTH GMP Today #
On 29 November 2021 @ 12.30 pm
Grey Market Premium Rs. 16, sellers
Let me first give salient information about STAR HEALTH
Star Health is and continue to be the largest private health insurer in India with a market share of 15.8% in the Indian health insurance market in fiscal 2021, In Fiscal 2021, it had total GWP of Rs 93,489.50 million. From being the first standalone health insurance (“SAHI”) company established in India in 2006, it has grown into the largest SAHI
company in the overall health insurance market in India.
Star Health has been consistently ranked first in the retail health insurance market in India based on retail health GWP over the last three Fiscal Years.
The retail health market segment is expected to emerge as a key growth driver for the overall health insurance industry in India
In Fiscal 2021, its retail health GWP was over three times the retail health GWP of the next highest retail health insurance market participant, positioning it well to continue to grow its business and market share.
As of December 31, 2020, it had the largest number of individual agents among SAHI insurers.As of March 31, 2021 its distribution network had grown to 737 health insurance branches spread across 26 states and 4 union territories in India. These facts show huge growth potential and immense management skills of the Company
The Promoters of STAR HEALTH
Safecrop Investments India LLP,Westbridge AIF & Rakesh Jhunjhunwala
STAR HEALTH IPO Details
IPO opens on 30 Nov 2021
IPO Closes on 2 Dec 2021
Issue : up to 80654848 Shares /Rs 7249.18 Crore
STAR HEALTH IPO Price Band Per Equity Share: Rs. 870-900
STAR HEALTH IPO Retail Lot Size 16 Shares
STAR HEALTH Listing on 10 December 2021
Shares offered to
QIB (75%) 59576502 Sh = Rs 5361.88 Cr
NII (15%) 11915300 Sh = Rs 1072.38 Cr
RII (10%) 7943534 Sh = Rs 714.92 Cr
Emp 1219512 Sh Rs 100 Cr
Total 80654848 Shares : Rs. 7249.18
Lot size : 16 Shares = 496471 Forms
Now important aspect of STAR HEALTH IPO Guidance
STAR HEALTH IPO Financial Details :
Earnings per Share 2019-20 Rs 5.59
Earnings per Share 2020-21,Rs (16.54)
Earnings per Share 2021-22 6M Rs (6.93)
Book Value of the Share as on 31.3.2021 Rs 63.58
Return on Net Worth: 19-20 16.46 %
Return on Net Worth: 20-21: (23.69) %
Return on Net Worth: 21-22 6M : (11.89) %
Upper Price Band/last EPS: N.A
Upper offer price/Book Value Ratio: 14.15
STAR HEALTH IPO Peer Comparison:
ICICI Lombard General Insurance @ PE Multiple of 46.66
ICICI Lombard General Insurance @ Price to BV ratio of 9.24
So what to do ???
Star Health has been consistently ranked first in the retail health insurance market in India based on retail health GWP over the last three Fiscal Years. Its retail health GWP was over three times the retail health GWP of the next highest retail health insurance market participant Research, positioning it well to continue to grow the business and market share.So here we have an IPO from Insurnance sector with strong growth potential, The IPO is offered at some what higher valuation and yet considering its strong growth and market share, I believe the higher valuation is justified
Aspect 1: The IPO of Rs. 7249 cr is of large size yet Retail portion and NII portions are not large and are expected to be subscribed multifold , to some extent due to brand name of Shri Jhunjhunwala.
Aspect 2: In recent period, other IPOs having Insurance tag has not received good over-subscriptions & listings
Aspect 3 : Grey Market Premium for this IPO is negligible . So there are chances of NIIs being reluctunt to apply with full force…. and yet Jhunjhunwala brand may create miracle in last few hours of the subscription.
Conclusion : So ??? Do Apply with long term investment angle ( as Portfolio Investment) and there are high chances that you get listing gains.