Ace investor Rakesh Jhunjhunwala has denied media reports claiming that he has pulled out of Star Health & Allied Insurance deal. Earlier, CNBC TV18 had reported citing sources that Rakesh Jhunjhunwala may have pulled out of the deal over concerns of financial performance. Rakesh Jhunjhunwala was reportedly in talks to pick up a 35% stake in Star Health Insurance, with an overall investment of up to Rs 2,500 crore. Rakesh Jhunjhunwala has said that he has not pulled out of the deal, and he is awaiting IRDA nod, reported CNBC TV18.
Earlier, Safecrop Holdings, a consortium with WestBridge AIF, Rakesh Jhunjhunwala and Madison Capital, had signed definitive agreements with the shareholders of Chennai-based Star Health & Allied Insurance Company to purchase their shares in Star Health, the country’s leading standalone health insurer. While the financial details on the deal were not disclosed, a Bloomberg report estimates the deal value at just under $1 billion, i.e, about Rs 6,500 crore. Star Health has a market share of 10% in the health insurance segment of India.
According to earlier reports by the channel, Rakesh Jhunjhunwala was to be a promoter of Star Health with 35% stake in the company. Further, Safecrop Holdings will be the new owner of Star Health. Interestingly, ICICI Lombard General Insurance had placed a bid amount of about Rs 5,800 crore, which fell short of Rakesh Jhunjhunwala-led consortium’s bid of approximately Rs 6,500 crore. So the valuation aspect of this particular transaction went in favour of the consortium led by Rakesh Jhunjhunwala, said a CNBC TV18 report in August 2018.