|IPO-Note||Star Health and Allied Insurance Company Ltd|
|Rs 870 – Rs 900 per Equity share||Recommendation: Subscribe|
Star Health and Allied Insurance Company Ltd Company Profile: –
According to CRISIL Research, Star Health and Allied Insurance Company is the largest private health insurer and largest retail health insurance company in India with the market share of 15.8% based on gross written premium of FY21. It had GWP (gross written premium) of Rs. 9348.95 Cr. in Fiscal 2021. It primarily focuses on the retail health and group health segments which accounted for 89.3% and 10.7% of the company’s total GWP in FY21 respectively. It also has largest health insurance hospital networks in India, with more than 11,778 hospitals as of September 30, 2021. Star Health distributes their health insurance policies primarily through individual agents, which accounted for 78.9% of their GWP in Fiscal 2021.
Star Health and Allied Insurance Company Ltd IPO – Details
|Objects of the issue|| ·Augmentation of capital base and maintenance of current solvency levels
· General Corporate Purposes
|Issue Size||Total issue Size -Rs. 7249.18 Cr.
Offer for Sale – Rs. 5249.18 Cr.
Fresh Issue – Rs. 2000 Cr
|Face value||Rs.10.00 Per Equity Share|
|Issue Price||Rs. 870 – Rs. 900|
|Bid Lot||16 shares|
|Listing at||BSE, NSE|
|Issue Opens:||30th Nov, 2021 – 2nd Dec, 2021|
|QIB||75% of Net Issue Offer|
|Retail||10% of Net Issue Offer|
|NIB||15% of Net Issue Offer|
Trade AnyTime AnyWhere With Elite Empower Mobile App
Check Star Health and Allied Insurance Company Ltd IPO Allotment Status
Go Star Health and Allied Insurance Company Ltd IPO allotment status would be available soon after the IPO closure date. Usually the allotment comes within a week from the closing date which in this IPO yet to be announced.
One can check the allotment on the given below link with PAN number or Application number or DP Client Id. All you need to do is to follow these steps:-
Star Health and Allied Insurance Company Ltd Financial Performance:
Star Health and Allied Insurance Company Ltd Shareholding Pattern:
|Shareholding Pattern||Pre- Issue||Post Issue|
|Promoters & Promoter Group||66.22%||58.42%|
Source: RHP, EWL Research
Star Health and Allied Insurance Company Ltd Strengths:
- largest private health insurance company in India with leadership in the retail health segment
- Have one of the largest and well spread distribution networks in the health insurance industry.
- Strong risk management focus with domain expertise driving a superior claims ratio and quality customer service.
- Experienced senior management team with strong sponsorship
Star Health and Allied Insurance Company Ltd Key Highlights:
- Gross Written Premium of the Company increased at 32% CAGR from FY18 to FY21 with market share increased from 10.9% to 15.8% in the same period.
- In Fiscal 2021 and H1FY22, retail health insurance products amounted to 87.9% and 85.6%, respectively, of total health GWP of the company.
- Has the lowest 29% expenses as a proportion of its gross premium amongst SAHI (standalone health insurance) players in Fiscal 2021.
- As a Result of the COVID-19 crisis, the company has seen an increase in net paid claims due to the COVID-19 accounted for 30% and 40.5% of their total net paid claims by value in Fiscal 2021 and H1FY22 respectively due to which it reported losses in FY21 and H1FY22.
Star Health and Allied Insurance Company Ltd Risk Factors:
- Have incurred losses in Fiscal 2021 and H1FY22 which may have a significant effect on liquidity if it is unable to raise funds to finance future losses.
- Global Pandemics, such as the recent coronavirus, COVID-19, could materially increase liabilities for claims by policyholders.
- As of September 30, 2021, its solvency ratio was 1.52x just above the insurance regulator’s prescribed control level of 1.50 times.
Star Health and Allied Insurance Company Ltd Outlook:
Star Health Insurance is the only SAHI (standalone health insurance) company among top five health insurance companies considering both health insurance premium of general insurance companies and gross written premium of SAHI companies. Health insurance premiums have grown at a CAGR of 19% in the last 6 years ending Fiscal 2021. CRISIL Research forecasts the gross direct premium for health insurers to grow at approximately 18% CAGR over the next four years. Star Health is the first pure-play health insurance company to be listed on stock exchange and could benefit from the increased awareness in the insurance market post Covid. There is no close peer to the company to compare valuation as there are only two listed general insurance companies ICICI Lombard and New India Assurance, which also provide other products like motor and fire insurance. Considering future prospects of the company we commend subscribe to the IPO.
Disclosure in pursuance of Section 19 of SEBI (RA) Regulation 2014
Elite Wealth Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only information in making their investment decision and must exercise their own judgment before making any investment decision.
For analyst certification and other important disclosures, see the Disclosure Appendix, or go to www.elitewealth.in. Analysts employed by Elite Wealth Limited are registered/qualified as research analysts with SEBI in India.( SEBI Registration No.: INH100002300)
Analyst Certification (For Reports)
Israil Khan, Elite Wealth Limited, firstname.lastname@example.org
The analyst(s) certify that all of the views expressed in this report accurately reflect my/our personal views about the subject company or companies and its or their securities. I/We also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Unless otherwise stated, the individuals listed on the cover page of this report are analysts in Elite Wealth Limited.
As to each individual report referenced herein, the primary research analyst(s) named within the report individually certify, with respect to each security or issuer that the analyst covered in the report, that:
(1) all of the views expressed in the report accurately reflect his or her personal views about any and all of the subject securities or issuers; and
(2) no part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in the report.
For individual analyst certifications, please refer to the disclosure section at the end of the attached individual notes.
This note may include excerpts from previously published research. For access to the full reports, including analyst certification and important disclosures, investment thesis, valuation methodology, and risks to rating and price targets, please visit www.elitewealth.in.
Important disclosures, including price charts, are available and all Elite Wealth Limited covered companies by visiting https://www.elitewealth.in, or emailing email@example.com with your request. Elite Wealth Limited may screen companies based on Strategy, Technical, and Quantitative Research. For important disclosures for these companies, please e-mail firstname.lastname@example.org.
Options related research:
If the information contained herein regards options related research, such information is available only to persons who have received the proper option risk disclosure documents. For a copy of the risk disclosure documents, please contact your Broker’s Representative or visit the OCC’s website at https://www.elitewealth.in
All research reports made available to clients are simultaneously available on our client websites. Not all research content is redistributed, e-mailed or made available to third-party aggregators. For all research reports available on a particular stock, please contact your respective broker’s sales person.
Ownership and material conflicts of interest Disclosure
Elite Wealth Limited policy prohibits its analysts, professionals reporting to analysts from owning securities of any company in the analyst’s area of coverage. Analyst compensation: Analysts are salary based permanent employees of Elite Wealth Limited. Analyst as officer or director: Elite Wealth Limited policy prohibits its analysts, persons reporting to analysts from serving as an officer, director, board member or employee of any company in the analyst’s area of coverage.
Country Specific Disclosures
India – For private circulation only, not for sale.
Legal Entities Disclosures
Mr. Ravinder Parkash Seth is the Managing Director of Elite Wealth Ltd (EWL, henceforth), having its registered office at Casa Picasso, Golf Course Extension, Near Rajesh Pilot Chowk, Radha Swami, Sector-61, Gurgaon-122001 Haryana, is a SEBI registered Research Analyst and is regulated by Securities and Exchange Board of India. Telephone:011-43035555, Facsimile: 011-22795783 and Website: www.elitewealth.in
EWL discloses all material information about itself including its business activity, disciplinary history, the terms and conditions on which it offers research report, details of associates and such other information as is necessary to take an investment decision, including the following:
a) EWL or his associate or his relative has no financial interest in the subject company and the nature of such financial interest;
(b) EWL or its associates or relatives, have no actual/beneficial ownership of one per cent. or more in the securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance;
(c) EWL or its associate or his relative, has no other material conflict of interest at the time of publication of the research report or at the time of public appearance;
(a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
(b) EWL or its associates have not managed or co-managed public offering of securities for the subject company in the past twelve months;
(c) EWL or its associates have not received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
(d) EWL or its associates have not received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
(e) EWL or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.
3 In respect of Public Appearances
(a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
(b) The subject company is not now or never a client during twelve months preceding the date of distribution of the research report and the types of services provided by EWL
Need An Assistance:
Star Health and Allied Insurance Company Ltd IPO FAQ
Ans. Star Health Insurance IPO will comprise fresh share issue and new offer share issue. The company aims to go public to accelerate its growth and expansion plan.
Ans. The company will open for subscription on 30 November 2021.
Ans. The minimum lot size that investors can subscribe to is 16 shares.
Ans. The Star Health Insurance IPO listing date is 10 December 2021.
Ans. The minimum lot size for this upcoming IPO is 16 shares.
Ans. KFin Technologies will be the registrar for this upcoming IPO.
Ans. Trilegal and Cyril Amarchand Mangaldas are the legal advisors for this upcoming IPO.
Ans. The promoters of Star Health Insurance include Mio Star, Konark Trust, Apis Growth 6 Ltd, MMPL Trust and Safecrop Investments India.
Ans. The lead managers of Star Health Insurance include Credit Suisse Securities India, BofA Securities India, ICICI Securities, IIFL Securities, Axis Capital, CLSA India Pvt. Ltd, Citigroup Global markets India, Jefferies India Pvt. Ltd, SBI Capital Markets, DAM Capital Advisors, Ambit Pvt. Ltd, and Kotak Investment Banking.