India’s first exclusive private health insurance company Star Health and Allied Insurance Company will be raising R170 crore before March end to meet growth plans as well as claims settlement. The company, which has equity partners such as Sequoia Capital, ICICI Ventures and Oman Insurance as a JV partner, may consider diluting promoters’ stake further, currently being held under an SPV or may issue fresh shares to accommodate new investors, said a senior official of the company.
The company, which has an equity capital base of R438 crore as of now, has raised R50 crore on the proposed R170 crore fund raising plans and expect to raise the remaining R120 crore on or before March this year. Sequoia Capital, ICICI Venture together said to have invested more than R250 crore into the company over a period of time and are holding 25% and 22% stake, respectively, said V Jagannathan, chairman and managing director, Star Health.
“Given our growth projections and to meet claims settlement, we require R170 crore more funds and as part of this exercise we have raised R50 crore a few days ago from the existing investors. ?We are looking at various options, including raising from existing investors and we hope to complete the same before March,” Jagannathan maintained. With this funds Star Health can manage the growth for next one year, he added.
However, a company official said,?We may look to bring in new investors by diluting the promoters stake further now under SPV or bring down the promoters holding from current 40% by issuing fresh shares to new investors or to existing investors. We hope we do not require any more funds once this current infusion is completed at least for next two years.”