Insurance IPOs to raise Rs.10,000 crore in 2021

Even as the markets are speculating over the size and timing of the LIC IPO, there are three insurance IPOs that have already filed their DRHPs with SEBI and their IPOs are expected to hit the market during 2021. What is more interesting is that the 3 insurance companies are all from different sub-segments of insurance. Here is a quick take.

The first of the IPO candidates is PB Fintech, which runs the popular Policybazaar.com. This is an online portal where potential insurance customers can screen insurance policies, compare with the peer groups, shortlist policies and even execute the transaction of buying the insurance as well as renewing the policy each year. In this endeavour, the rich content deck of Policybazaar acts as the research support. Policybazaar.com plans to raise Rs.6,017 crore via the IPO. This will comprise a fresh issue of Rs.3,750 crore and an offer for sale of Rs.2,267 crore. Policybazaar has 93% market share of online policies sold.

Read: Policybazaar jumps on the digital IPO bandwagon

The second major IPO candidate is Star Health Insurance, India’s largest stand-alone health insurer with a 15% market share. Star Health is backed by Westbridge Capital and Rakesh Jhunjhunwala. Star Health will raise Rs.2,000 crore via the fresh issue and another Rs.1,000 crore via an offer for sale. A total of 6 crore shares will be sold under the OFS.

Check: Star Health Insurance Files DRHP

The third insurance IPO is Medi-Assist, which is India’s third-largest third-party administrator (TPA). Typically, the TPAs handle the entire administrative function pertaining to claims and settlement. Medi Assist plans to raise up to Rs.1,000 crore entirely through the OFS route. Medi Assist has a pan-India network of over 11,000 hospitals and is the preferred service provider for names like Apollo, Narayana Hrudayalaya, Manipal, Fortis etc. Medi Assist was floated by Dr. Vikram Jit Singh Chatwal, formerly with Apollo Health Street.

Of course, LIC IPO will be the biggest of all IPOs, as and when it hits the primary market.

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Upcoming IPOs in 2021

IPOs in August 2021