The stock market’s veteran investor Rakesh Jhunjhunwala is going to win the lottery once again. They will earn 6x return on their investment in just two years. Opportunity is for IPO of Star Health. They will sell their stake in the issue.
Jhunjhunwala has 8.23 crore shares
Rakesh Jhunjhunwala holds 8.23 crore or 14.98% shares in Star Health Allied Insurance. He has invested in this company a total of 9 times between March 2019 to November 2021. His average investment per share is Rs 155.28. Star Health’s IPO will open on November 30 and close on December 2. The company is bringing this issue at Rs 870 to 900. On this basis, Rakesh Jhunjhunwala will get a profit of 5.79 times. The valuation of Star Health Insurance is Rs 51,000 crore.
The company will raise Rs 7,249 crore
Star Health is a private sector insurance company. It is about to enter the stock market to raise Rs 7,249 crore. Jhunjhunwala started investing in this company 32 months back. He has bought 93.24 lakh shares of Star Health in the last one year. Its average price per share stood at Rs 256.44. He has bought this share several times. His wife Rekha Jhunjhunwala has 1.78 crore shares. That is, their holding is 3.23% in the company.
3rd biggest issue of this year
Star Health is bringing the third biggest issue of this year. It will raise Rs 7,249 crore. Earlier, Paytm had raised Rs 18,300 and Zomato had raised Rs 9,350 crore. New shares worth Rs 2 thousand crore will be issued in Star Health, while 5.83 crore shares will be issued under Offer for Sale (OFS). Qualified Institutional Buyers (QIBs) will have 75% reserve, 15% for non-institutional investors and only 10% for retail investors.
The existing shareholders and promoters will also sell their stake in Star Health. Presently the promoters hold 62.80% stake. Rakesh Jhunjhunwala and his wife hold 17.26% stake.