ICICI Venture, Apis Partners invest $47 mn in insurer Star Health

ICICI Venture and Apis Partners have acquired a minority stake in Star Health and Allied Insurance Company for Rs 315 crore.

A minority stake in Star Health has been acquired by Apis Growth Fund I, a private equity fund managed by Apis Partners LLP and India Advantage Fund Series 4, a private equity fund managed by ICICI Venture, in a deal syndicated by investment bank MAPE Advisory Group, the private insurer said in a release.

"The valuation of our company is estimated at around Rs 2,000 crore. We are raising a total of Rs 315 crore for dilution of minority stake to ICICI Venture and Apis Partners LLP," Star Health sources told PTI.

Apis Partners is a private equity asset manager focused on financial services in the growth markets of Africa and Asia.

“Star Health has demonstrated significant growth under Mr. Jagannathan’s leadership and we are pleased to participate in the capital raise, alongside Apis Partners, to fund the growth plans of the company in a sector that is witnessing a huge growth momentum," said Prashant Purker, managing director & CEO of ICICI Venture.

ICICI Venture is a specialist alternative assets manager and wholly-owned subsidiary of ICICI Bank.

Apis Partners will join the board of directors and existing shareholders that include Sequoia Capital and Tata Capital Growth Fund.

"This investment demonstrates the potential of our company and the strength of our business," Star Health chairman and managing director V Jagannathan said.

Apis Partners co-founder and managing partner Udayan Goyal said, "We believe the sector is poised for enhanced growth due to powerful demographics and significant increases in discretionary incomes. The management has also built a strong platform and excellent economics led by Jagannathan, with over 40 years of experience in the insurance sector." 

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