Star Health Insurance IPO

Star Health and Allied Insurance Company Ltd.

₹13,920 /16 sharesMinimum Investment

Star Health Insurance IPO Details

Bidding DatesMin. InvestmentLot SizePrice Range
30 Nov ‘21 - 2 Dec ‘21₹13,92016₹870 - ₹900
Issue SizeIPO Doc
7249.00Cr
RHP PDF

Subscription Status As on 02 Dec '21, 5:00 PM

  • Retail Individual Investor
    1.10x
  • Non-Institutional Investor
    0.19x
  • Qualified Institutional Buyers
    1.03x
  • Employees
    0.10x

About Star Health Insurance

Star Health and Allied Insurance is a private health insurer company based in Chennai, India. The target segment of the company included individuals, families, students, senior citizens, as well as persons with pre-existing medical conditions. Star Health’s comprehensive health insurance product suite insured 20.5 million lives in Fiscal 2021 in retail health and group health. Overall, the company had Gross Written Premium (GWP) of Rs 9,348.95 crore in Fiscal 2021. ;
Parent Organisation
Star Health and Allied Insurance Company Ltd.
Founded
2005
Managing Director
S. Prakash, Anand Roy
Star Health IPO review, details, analysis, business, financials | Health insurance

Strengths & Risks

  • Largest private health insurance company in India
  • Diversified product suite with a focus on innovative and specialized products
  • One of the largest and well spread distribution network in the health insurance industry, according to CRISIL Research
  • As of March 31, 2019, 2020 and 2021, the company issued 4.3 million, 5.1 million and 7.0 million health insurance policies - the highest among all health insurance providers.
  • Retail health GWP was over three times the GWP of the next highest retail health insurance market participant in each of Fiscal 2019, 2020 and 2021.
  • Total number of individual agents grew at a CAGR of 27.3% from 0.29 million in Fiscal 2019 to 0.46 million in Fiscal 2021.
  • From Fiscal 2019 to Fiscal 2021, the company’s retail health GWP grew at a CAGR of 32.5%,
  • Approximately 97.9% renewals by GWP value for retail health business in Fiscal 2021
  • 737 health insurance branches spread across 26 states and 4 union territories in India
  • Total number of individual agents grew at a CAGR of 27.3% from 0.29 million in Fiscal 2019 to 0.46 million in Fiscal 2021.
  • From Fiscal 2018 to February 2021, the company introduced 49 new products (including all variations of policies).
  • COVID-19 outbreak has significantly affected business and operations.
  • Any negative publicity could have a material adverse effect on the business, financial condition and results of operations.
  • The unavailability or inaccuracy of data provided by customers could limit the functionality of the products and disrupt the business.
  • The company could be subject to claims by the customers and/or regulators for alleged mis-selling.
  • The discontinuance of the voluntary quota share treaty (VQST) reinsurance treaty.
  • The change in method of accounting for UPR.
  • Failure to continue to adapt to technological change could adversely affect the business.
  • Failure to accurately estimate the incurred medical expenses could affect the business.
  • Susceptibility to any adverse trends and other developments that may affect the sale of retail health insurance products.
  • Certain outstanding legal proceedings
  • There is an ongoing criminal proceeding involving the Independent Director Rajeev Agarwal
  • Failure of distribution intermediaries obtain the requisite qualifications, licenses or registrations the failure may result in penalties being imposed on the company.
  • The company has incurred losses in fiscal 2021 and may incur losses in the future.
  • Rs 2.50 billion of outstanding debt liabilities as of March 31, 2021.

Financials

*All values are in Rs. Cr
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