India’s Star Health and Allied Insurance has filed its draft red herring prospectus (DRHP) with the regulator, SEBI, for its initial public offering.  

The IPO involves a fresh issue of $268.46m and an offer for sale of almost 60 million equity shares by existing selling shareholders and promoters, Money Control reported citing the filing.

According to the report, the selling shareholder includes Safecrop Investments India, Apis Growth 6, University of Notre Dame DU LAC, MIO IV Star, Konark Trust among others.

The insurer intends to use the proceeds for strengthening its capital base.

Founded in 2006, Star Health provides personal accident, health, and overseas travel insurance. According to CRISIL Research, it has a 15% market share.

Star Health and Allied Insurance is backed by Indian billionaire investor Rakesh Jhunjhunwala, Westbridge Capital, and Madison Capital.

At the end of FY21, Star Health’s solvency ratio (a measure of an insurer’s ability to meet its liabilities) increased to 2.22 from 1.88 at the end of the previous fiscal year.

The insurer registered a 36.7% surge in its gross premiums in the fiscal year 2021 as against 27.1% in the year-ago period.

Star Health has hired up to 12 investment banks for its IPO, including Kotak Mahindra Capital, Citibank, Credit Suisse and Bank of America.

Last month, the insurer raised $164.28m (INR12bn) in a pre-IPO funding round led by Singapore’s state investor GIC.

In August 2008 Westbridge Capital, Rakesh Jhunjunwala and Madison Capital’s investor consortium acquired more than 90% stake in Star Health.

Earlier this week, the Indian online insurance platform Policybazaar announced its plan to raise approximately $872m through its upcoming initial public offering (IPO).