Three Firms Divest 7.06% Stake in Star Health for Rs 2,210 Crore

Three major investors, Apis Partners, Madison India Capital, and ROC Capital, have recently divested a significant portion of their holdings in Star Health and Allied Insurance, marking a notable transaction in the health insurance sector. The combined sale amounted to a 7.06 per cent stake in the company, fetching a total of Rs 2,210 crore through open market transactions. This move has seen Apis Partners and ROC Capital completely exit their positions in the Chennai-based insurer.

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London-based Apis Partners, through its affiliate Apis Growth 6 Ltd, sold over 1.52 crore shares, equating to a 2.61 per cent stake in Star Health and Allied Insurance. ROC Capital, via its arm ROC Star Investment Trust, offloaded 59.08 lakh shares or a 1.01 per cent stake of the health insurer. Additionally, Madison India Capital through its affiliates MIO IV Star and MIO Star disposed of approximately 1.40 crore and 61.34 lakh shares, representing a 2.39 per cent and 1.05 per cent stake respectively, in the health insurance company.

The shares were sold at an average price of Rs 535 apiece, culminating in a transaction value of Rs 2,210.53 crore as per the block deal data on the National Stock Exchange (NSE). Following this sale, Apis Partners and ROC Capital have sold their entire stakes of 2.61 per cent and 1.01 per cent respectively in Star Health. Madison India Capital has reduced its stake to 1.16 per cent after selling a 2.39 per cent stake.

Buyers of the Stake

The shares were acquired by a diverse group of buyers including domestic mutual funds (MFs), an insurance company, and foreign investors. Notable among the buyers were HDFC Mutual Fund (MF), UTI MF, ICICI Prudential Life Insurance Company, BNP Paribas Arbitrage, Chanakya Wealth Creation Fund, Citigroup Global Markets Mauritius, and Clarious Capital 1. International investors such as East Bridge Capital Master Fund I, Emerge Capital Opportunities Scheme, Goldman Sachs, Morgan Stanley Asia Singapore, Plutus Wealth Management, and Societe Generale also participated in acquiring stakes in Star Health.

Market Impact

Following the announcement of this significant stake sale, shares of Star Health and Allied Insurance Company experienced a positive movement. The stock price rose by 1.31 per cent to close at Rs 547 apiece on the NSE.

Previous Transactions

This is not the first time that these entities have engaged in transactions involving Star Health's shares. In March of the current year, Apis Partners sold shares worth Rs 553 crore of Star Health and Allied Insurance. Furthermore, in August of the previous year, ROC Capital along with Madison Capital and the University of Notre Dame divested shares of the insurer for Rs 1,312 crore.

The recent transactions underscore the dynamic nature of investments within India's health insurance sector and highlight the interest from both domestic and international investors in this growing market.