With IPOs worth Rs 10,000 crore, three insurance companies are on their way to boom into the primary market.
In the upcoming months, PB Fintech, Star Health & Allied Insurance Company, and Medi Assist Healthcare Service will launch their initial public offerings. They have already filed a respective draft prospectus with the market regulator SEBI.
This year, about Rs 70,000 crore has been raised through only the IPO market, with more than 40 companies launching their IPOs.
The high volumes of IPO proceedings have been declared this year as the ‘best-ever for IPOs, as stated by investment bankers.
Three Insurance Cos to Launch IPOs
The IPO market has flourished this year. It has been four months since the year-end and already 40 companies have raised a whopping Rs 70,000 crore.
In August, five companies went public, while 24 companies filed their IPO papers this month, representing a total of Rs 4,000 crores.
To mop up over Rs 10,000 crore, three insurers, among the best in their fields, are preparing to list on the stock exchange in the upcoming months.
Sebi has already received their draft prospectus.
Below is a list of these three companies:
- Policybazaar’s parent company, PB Fintech, is an online insurance lender. The company plans to raise Rs 6,017 crore and is backed by Tiger Global and Tencent Holdings.
- Star Health, the largest independent private health insurer, backed by Rakesh Jhunjhunwala and Westbridge Capital, plans to raise Rs 3,000 crore.
- Medi Assist, the largest and the most popular TPA (third-party administrator), has plans to raise about Rs 840-1,000 crore.
PB Fintech filed the draft red herring prospectus with Sebi on August 4, while Star Health on July 28 and Medi Assist on May 11.
Breakdown of Shares
Through Policybazaar and Paisabazaar, PB Fintech penetrates the underpenetrated online insurance and lending markets.
According to the number of policies sold, Paysabazaar holds 93.4% of the market share of the digital insurance marketplace.
By volume, Policybazaar alone accounted for 65.3% of all digital insurance sales in FY2020.
PB Fintech’s goal of Rs 6,017.5-crore public issue is segregated into Rs 3,750 crore fresh issues and an offer-for-sale (OFS) of Rs 2,267.5 crore by existing selling shareholders.
By 2021, the largest private health insurer will hold a market share of 15.8% in the health insurance market.
Its IPO will consist of new shares worth Rs 2,000 crore and OFS worth 60.1 million shareholders.
Based on revenue size and premium services, it is India’s largest and most popular TPA.
It is the third-party administrator for almost all the major hospital chains, like Apollo Hospitals, Manipal Hospital, Fortis Healthcare, Narayana Hrudayalaya, and Max Healthcare. Over 11,000 hospitals in 722 cities and towns use its services.
According to Moneycontrol, Medi Assist’s IPO will consist of only 2,539,092 shares of OFS held by Vikram Jit Singh Chatwal, Medimatter Health Management, Bessemer Health Capital LLC, and Investcorp Private Equity Fund I.