Speaking to reporters after introducing Single Protection policy for the entire family Star Health's Chairman and Managing Director V Jagannathan said that the company was planning to raise around Rs 170 crore, during this financial year, of which Rs 50 crore was raised from the existing investors till December 2011.
A senior official from the company added, the money was raised through a rights issue and the shares were allocated at a price of Rs 28.7, including the premium of Rs 18.7.
“We are talking to the existing and new investors to raise another Rs 120 crore,” he said.
Present equity capital base of Star Helath is Rs 438 crore, including the paid capital of Rs 278 crore and Rs 160 crore from premium.
Both, Sequoia Capital and ICICI Venture, have invested Rs 140 crore and Rs 130 crore, respectively.
As on date, share holding of the company is 35 per cent held by a special purpose vehicle called Star Health Investments Ltd, while
Sequoia Capital holds 25 per cent, ICICI Venture 22 per cent, eight per cent Oman Insurance and rest others.
Meanwhile, the insurer plans to close the current the fiscal with a premium collection of Rs 1,200 crore, “growth is flat and will continue for one more financial year. In a row three years the growth will be flat, by 2013-15 company eyes Rs 2000 crore premium,” said Jagannathan.
He added, the company has lost Rs 800 crore of premium from two state governments -- Tamil Nadu (Rs 600 crore & Andhra Pradesh (Rs 200 crore) — since these Governments have decided to manage the insurance on its own.
Of the current premium collection, 75 per cent comes from health insurance, while the remaining 25 per cent from personnel accident and overseas, he said.
The Reserve Bank of India (RBI) today announced that it would purchase government securities worth Rs 10,000 crore through open market operations ...