Five companies including three nonlife insurers, one financial services firm and a global private equity fund have been shortlisted to purchase Star Health & Allied Insurance, two people with direct knowledge of the matter said. A deal could value India’s largest standalone health insurer at Rs 6,500 crore, they added.
Bankers have shortlisted ICICI Lombard, HDFC Ergo, Bajaj Allianz, Hero Fincorp and PE firm Warburg Pincus, said one of them. “There is huge interest for Star Health Insurance’s business.”
The sellers have put a floor price of Rs 5,500 crore after it received bids from 12 companies, the second person said. “These shortlisted buyers will have to bid above the floor price.”
Star Health, founded in 1996, is owned by a clutch of global and local private equity funds, Oman based insurer Oman Insurance Company and Dubai-based conglomerate ETA Trading. Star Health managing director V Jagannathan, too, has a minority stake. It writes policies in personal accident, medical claim and overseas travel insurance.
