Rakesh Jhunjhunwala, Premji vie to buy Star Health Insurance

CHENNAI: Indian giants Rakesh Jhunjhunwala and Azim Premji seem to in the race to buy Star Health, according to recent media reports

Star Health and Allied Insurance is the first stand-alone health insurance company in the country carrying a price tag of $1 billion and Jhunjhunwala's RARE Enterprises has made a surprise bid for it states a report in TOI.

The sale of the firm has been backed by all the investors of the Star Health that are ICICI Venture, Sequoia Capital, Tata Capital, Alpha TC Holdings, Apis Partners, Oman Insurance Company and ETA Star of Dubai.

The other investors who have bid as the transaction has entered the last leg include Kedaara Capital, WestBridge, Temasek and Prudential and strategic investors including ICICI Lombard and HDFC General Insurance.

Investment banking firm Kotak is managing the sale and the deal is expected to complete over the next couple of months.

V Jagannathan, former CMD of United India is the man behind the firm who has driven the company to become one of the profitable insurers in the health space.

Shareholders feel that since there are a number of health insurance companies opting to go public, it is the right time to sell the firm.

According to TOI, there are two possibilities. First, bring in a financial investor who will provide an exit for all other shareholders in the company and get the company moving along with Jagannathan and management team at the helm. The second is a sale to a strategic investor. "The second option is unlikely as the management feels that the financial investor will help retain the Star Health brand," sources told the daily .