In the first PE deal in the Indian health insurance sector, ICICI Venture on Thursday announced that it was investing Rs 120 crore ($27 million) in Star Health and Allied Insurance Company Ltd.
For ICICI Venture this would be the maiden investment from its new $500 million PE fund India Advantage Fund Series 3.
The exact stake picked up by the fund is not known. Star Health has grown rapidly since its inception in 2006 to about 3,000 employees.
“For the just concluded fiscal ended March 2010, we have underwritten Rs 975 crore worth premium and expect a Rs 15 crore profit. With over 157 offices and 4,000 network hospitals, the funds received from this dilution would be used to shore up solvency margins and launch new products and consequently underwrite more policies,” V Janannathan, CEO of Star Health, said.
Source: Times of India