Private Equity Fund Investments
Star Health Insurance raises Rs.1,200-Cr from GIC, Capital Group, others in pre-IPO round: report
Chennai-based Star Health and Allied Insurance Co Ltd has raised around INR 1,200 crore in a pre-IPO funding round earlier this quarter, led by Singapore's sovereign wealth fund GIC. While GIC invested about INR 600 crore, Capital Group invested about INR 300 crore. A few other public market investors and existing investors in Star Health also participated in the round. Star Health reported a 36.7% growth in its gross premiums in FY21, higher than the 27.1% growth rate it clocked in the previous fiscal. At the end of FY21, its solvency ratio, a measure of an insurance company's ability to meet its liabilities, increased to 2.22 from 1.88 at the end of the previous fiscal year. (Regulatory requirements mandate a solvency ratio of 1.5.) Star recently hired around 12 investment banks for its INR 2,000-3,000 crore IPO, including Kotak Mahindra Capital, Citibank, Credit Suisse and Bank of America. The company expects to get a valuation of over USD 3 billion for its public market debut.
From the Venture Intelligence PE-VC Deal Database: From Mar-10 to Jan-20, Star Health had raised over $1,175-M from ROC Partners, WestBridge, Rare Enterprises, Madison India, Apis Partners, ICICI Venture, ICICI Venture, Sequoia Capital India, Tata Capital and others. (Subscribers to the database can login to view the valuation, deal structuring and other transaction details.)
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