Home Lending market IPO: Three insurance-related companies to raise Rs 10,000 cr through IPOs

IPO: Three insurance-related companies to raise Rs 10,000 cr through IPOs

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Mumbai: Adding more fire to the already frenzied IPO market, three insurance companies are entering the primary market with initial public offerings in the coming months to mop up more than Rs 10,000 crore. These companies are – PB Fintech, which manages the insurance brokerage Policybazaar; independent health insurer Star Health & Allied Insurance Company; and the third-party administrator Medi Assist Healthcare Service. They have already submitted their draft prospectus to the market regulator Sebi.

Already more than 40 companies have reached the IPO market so far this year, raising almost Rs 70,000 crore.

August alone has seen four listings, and the fifth (Nuvoco Vistas Corp, which raised Rs 5,000 crore) is slated for Monday and up to 24 more filed their IPO papers this this month, seeking to mop up over Rs 4,000 crore.

Investment bankers expect more than 100 issues this year, making it the best ever for IPOs.

PB Fintech, the parent company of online insurance distributor Policybazaar, is looking to raise Rs 6,017 crore, making it the second biggest issue so far this year after the Rs 9,375 crore Zomato issue last month. PB Fintech is backed by Tiger Global and Tencent Holdings.

Star Health, the world’s largest independent private health insurer, plans to raise Rs 3,000 crore; while Medi Assist, which is the largest third-party administrator, is preparing an issue of Rs 840 to 1,000 crore, according to its draft red herring prospectus (DRHP) filed with the market watchdog.

While PB Fintech filed for DRHP on August 4 (a day when four companies went public), and Star Health did so on July 28 and Medi Assist on May 11.

Star Health, backed by billionaire Rakesh Jhunjhunwala and Westbridge Capital, is the largest independent private health insurer with a 15.8% market share in the health insurance market in fiscal 2021.

Its public offer will consist of a new issue of shares totaling Rs 2,000 crore and an offer to sell (OFS) of 60.1 million shares by shareholders.

Safecrop Investments India is looking to get rid of 30.68 million shares, followed by Apis Growth, which is looking to sell 7.68 million shares. Other investors such as the University of Notre Dame, Mio Star, Roc Capital, Sai Satish, Venkatasamy Jagannathan, Konark Trust, Bejris Minoo Desai and MMPL Trust also sell shares through the OFS.

PB Fintech caters to the country’s large and severely under-penetrated online insurance and lending markets through its Policybazaar and online lending platform Paisabazaar, the largest digital insurance marketplace with a market share of 93.4% based on the number of policies sold. In fiscal 2020, 65.3% of all digital insurance sales by volume were made through the Policybazaar platform.

Its public issue of Rs 6,017.5 crore includes a new issue of Rs 3,750 crore and a sale offer of Rs 2,267.5 crore by existing selling shareholders. The OFS consists of the sale by the investor SVF Python II (Cayman) for Rs 1,875 crore and Rs 392.5 crore of shares by other shareholders.

Medi Assist is the largest third-party insurance administrator in the country in terms of revenues and premiums paid. It operates a pan-Indian network comprising over 11,000 hospitals in 722 towns and villages.

Medi Assist is the most popular Third Party Administrator (TPA) for most major hospital chains such as Apollo Hospitals, Manipal Hospital, Fortis Healthcare, Narayana Hrudayalaya, and Max Healthcare, among others.

Its IPO consists only of 2,539,092 shares of OFS by Vikram Jit Singh Chatwal, Medimatter Health Management, Bessemer Health Capital LLC and Investcorp Private Equity Fund I. The offer constitutes 40.70% of the post-paid share capital. company offer.


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