Star Health Insurance IPO

Dr. Prakash Subarayan is a passionate medical doctor who became the Managing Director of a leading health insurance company for the first time in India. Star Health Insurance IPO.

India's largest private health insurer Star Health reacted to the IPO last week by reducing the size of its initial public offering (IPO) to Rs 64 billion ($848.02 million) from Rs 72.49 billion.

The Star Health IPO will open on November 30, 2021 and close on December 2, 2021. Star Health IPO Bid Date November 30, 2021 10.00 A.M. December 2, 2021 5.00 P.M. The cut off time for UPI mandate confirmation is 12 P.M. The day after issue closure.

Analysts at MK Global have come out with a buy rating for Star Health, two days after its listing on the bourse. By March 2023, they see a 25 percent potential upside in the counter. Their target is Rs 1,135. It closed at Rs 907 on Friday.

Star Health Insurance IPO
Star Health Insurance IPO

On December 10, 2021, shares of Star Health Insurance delisted by Rs 845, down 40.47 percent.

Star Health Insurance IPO. The largest private sector health insurance company Star Health received a poor response to its Rs 7,250 crore initial public offering (IPO), due to high prices, a drop in profits on account of Covid-19.

Star Health Insurance IPO

Star Health and Allied Insurance Co. Ltd. is the country's first specially insurance provider The company extends health, foreign travel and personal accident insurance policies This insurance provider has been actively catering to the insurance policy needs of families, individuals and corporations since 2006. Star Health Insurance has a long standing relationship with multiple banks in India. Star Health Insurance IPO.It works directly and through a connected network of third party agents and online channels.

Star Health Insurance IPO Objectives

  • To augment its capital base.
  • To address general corporate purposes.

Why should you invest in Star Health Insurance?

Here are some reasons to subscribe to Star Health Insurance IPO.

  • Star Health Insurance is a trusted name in the insurance sector Its brand image and prominent presence continue to help expand its market share.
  • The insurer has a lot of upside in terms of growth and revenue generation Its diversified product offering acts as a catalyst for future growth along with increasing demand for health insurance policies.
  • The company has a strong financial position which can only improve in this direction It offers upside to investors in terms of stable and substantial revenue generation.

Star Health is India's largest private health insurer, with a 15.8% share of the Indian health insurance market in FY 2021. Star Health has led the growth in the health insurance industry with a CAGR of 36% in its Gross Direct Premium (GDPI). Compared to the growth rate of the healthcare industry during this period in the last 5 years (FY16: 21).

As a result, Star Health has improved its market share on a YoY basis and now commands a healthy market share of 16% (eg travel and PA) in FY21. The strong growth for Star Health is attributed to its leadership in the retail healthcare segment, which grew at a CAGR of 33% over FY19-21 and commands the highest market share among industries in the retail healthcare segment (eg travel and PA) in FY21.

Competitive strengths

  • Largest private health insurance company in India with leadership in the attractive retail health segment.
  • Largest network distribution in the health insurance industry.
  • Diversified product suite with a focus on innovation and specialized products.
  • Strong risk management with superior claims ratio and quality customer services.
  • Demonstrated track record of operating and financial performance.

How Star Health Sell Health Policies ?

The company distributes its health insurance policies mainly through individual agents, which accounted for 78.9% of its GWP in fiscal 2021.

Star Health has a robust network of 4.6 lakh agents as of Mar21.

Personal insurance is the primary method of delivery in the health insurance industry, as health insurance is primarily an ancillary product in which consumers require assistance in choosing the right policy for their needs and during the claims process.

It sells policies through the policy market and has the largest market share of health policies sold on the policy market platform.

Distribution and Presence of Star Health Insurance

As of September 30, 2021, the distribution network has grown to 779 health insurance branches spread across 25 states and 5 union territories in India. Its existing branches are supplemented by an extensive network of over 562 Sales Manager Stations (SMS), which are small personal service centers and over 6,892 home sales managers, as of September 30, 2021. Includes distribution through other production channels Telemarketing and direct online sales through their websites, brokers, insurance marketing firms and web aggregators.

Network Hospital?

Generally, it is always beneficial for the policyholder if the insurance company has a large number of hospitals. If the policy holder is admitted to a network hospital they can get less cash benefits and they don't have to pay anything out of pocket. Star Health has also successfully built one of the largest health insurance hospital networks in India with 11,778 hospitals as of September 30, 2021.

Impact of COVID-19?

Star Health Insurance IPO

  • Star Health settled 1.5 Lakh covid related claims in FY21.
  • Overall COVID-19 gross incurred claims amounted to Rs1600 Crores.
  • Company incurred a loss of Rs. 825 Crores due to COVID-19.


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