Can you tell me about the Star Health Insurance IPO, which is opening later this month?

Star Health is India’s largest health insurer with a dominant market share in the health insurance underwriting business. It will open its IPO on 30-November and close on 02-December. The IPO will be a mix of a fresh issue of shares and an offer for sale. The IPO will overall comprise of a fresh issue of Rs.2,000 crore and an offer for sale of OFS of 5.83 crore shares by early investors and the promoter group.

The price band has been fixed in the range of Rs.870 to Rs.900 and at the upper end of the band, the total size of the IPO comes to Rs.7,249 crore. The company will start with an IPO linked valuation of close to Rs.50,000 crore. Ace investor, Rakesh Jhunjhunwala and his wife, are early backers of Star Health and own close to 20% in the company. Star Health will use fresh issue proceeds to augment its capital and maintain solvency ratios.