India’s Star Health and Allied Insurance is planning to raise nearly $974.23m via its initial public offering (IPO) at a valuation of approximately $7bn.

As per media reports, the health insurance firm has priced its IPO between $11.67 (INR870) to $12.07 (INR900) per share, which will be open for subscription on 30 November 2021.

The IPO includes a fresh issue of shares worth $268.46m and an offer for sale of nearly 81 million shares by existing selling shareholders and promoters, Bloomberg reported.

Safecrop Investments India, Apis Growth 6, University of Notre Dame DU LAC, MIO IV Star, Konark Trust among others are Star Health’s selling shareholders.

The firm will use the proceeds for strengthening its capital base.

Nearly 73% of the offering is reserved for qualified institutional buyers, which amounts to as much as $720m.

Star Health counts billionaire investor Rakesh Jhunjunwala, Westbridge Capital and Madison Capital among its backers.

Established in 2006, Star Health, which has a 15% market share according to ratings agency Crisil, provides personal accident, health, and overseas travel insurance.

Notably, the IPO, which will be the third largest this year if fully subscribed, comes just few days after fintech firm Paytm raised $2.46bn in IPO and dropped over 30% in initial days.

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