WestBridge Capital has started a process to exit its investment in Star Health and Allied Insurance, Moneycontrol reported, citing unnamed sources.
The report said the private equity firm has asked investment banks to present proposals for a mandate to oversee the sale of its stake, with JPMorgan identified as the preferred adviser.
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Based on the June quarter shareholding pattern, WestBridge holds around 40% of Star Health through Safecrop Investments India, a consortium set up by WestBridge, late investor Rakesh Jhunjhunwala and Madison Capital.
WestBridge requested expressions of interest from investment bankers a few weeks ago to run a sale process for its Star Health shares.
The source said that the size, structure and timing of any deal have yet to be decided and will depend on market conditions and investor interest.
“Given that the quantum of share held is huge, the idea is to explore multiple options for an exit,” the person said.
“It is too early to say what would be the preferred route given that a large volume of shares is involved, but a combination of many options such as finding a strategic buyer, a set of financial investors and some bit of secondary market sale is likely,” the person added.
Moneycontrol said one possible reason for the planned exit is WestBridge’s role in Kiwi General Insurance, a general insurance company it launched with industry veterans Neelesh Garg and Saurav Jaiswal in November 2024.
Kiwi General Insurance recently received approval from the Insurance Regulatory and Development Authority of India (IRDAI) to start operations.
WestBridge is currently recognised as a promoter in both Star Health Insurance and Kiwi General Insurance.
According to the report, IRDAI licensing norms allow a promoter to hold only one insurance licence, which could require WestBridge to exit Star Health after Kiwi General Insurance began operations.
In response to Moneycontrol, Star Health Insurance said: “We do not comment on market speculation. Any decision relating to a shareholder’s investment is entirely a matter for the shareholder. The company continues to remain focused on executing its business strategy and creating long-term value for all stakeholders.”
The report also referred to Prudential relinquishing its promoter status in ICICI Prudential after acquiring a 75% stake in Bharti Life Insurance.
According to its website, Star Health was established in 2006 and offers health, personal accident, overseas and local travel insurance.
WestBridge first invested in Star Health in 2018, when it and consortium partners Madison Capital and the late Rakesh Jhunjhunwala bought a significant majority stake of possibly more than 90%.
When Star Health was listed in December 2021, Safecrop Investments reduced its holding from around 48–49% to 41%, and promoters have continued lowering their stakes since then.
