‘Stake sale papers given to IRDAI’

Share purchase agreement signed, says Star Health CMD

City-based Star Health & Allied Insurance Company Ltd. has asserted that papers related to stake sale have been submitted to the Insurance Regulatory and Development Authority of India (IRDAI).

“We have given the papers to IRDAI,” said V. Jagannathan, chairman-cum-managing director of Star Health.

Mr. Jagannathan said that the share purchase agreement had already been signed. “All are on board. And, there is no question of anybody not being there,” he added.

Sometime ago, Safecrop Holdings Pvt. Ltd., a consortium comprising WestBridge AIF, Rakesh Jhunjhunwala and Madison Capital, signed definitive agreements with the shareholders buy out their shares in Star Health.

Existing shareholders of Star Health include Star Health Investments Pvt. Ltd. and funds managed or advised by ICICI Venture, Tata Capital and Apis Partners.

The deal size was reported to be about $1 billion.

Kotak Investment Banking, Evercore and Mizuho Securities (Singapore) acted as the financial advisers to Star Health and its shareholders.

Nishith Desai Associates and Trilegal acted as advisers for the purchasers and Platinum Partners for the company.

Star Health, the country’s first standalone health insurance firm, was founded in 2006. It provides health insurance, overseas mediclaim and personal accident policies.

It employs 11,000 people providing insurance coverage to one crore lives as on March 31, 2018.

The company has a written a direct premium of ₹ 4,161 crore (41% YoY growth) with profit after tax of ₹171 crore and a networth of ₹960 crore as on March 31, 2018.

According to Mr. Jagannathan, Star Health is likely to end the current financial year with a GWP (gross written premium) of about ₹5,500 crore. He was confident that Start Health would peak ₹7,000-crore mark in GWP next year.

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