SBI Mutual Fund, India’s largest fund house by assets, has acquired stake in insurance service provider, Star Health and Allied Insurance Company Ltd. via block deals on Wednesday, according to data available.
The fund house acquired 1.6 crore shares of Star Health on Wednesday, at an average price of ₹420 per share, taking the total transaction value to ₹672 crore.
Based on the number of shares acquired, SBI Mutual Fund bought a 2.72% stake in Star Health on Wednesday.
According to the March quarter shareholding pattern, SBI Mutual Fund did not have any stake in the company. In case it did, its exposure could be less than 1% as its name does not feature in the list of prominent shareholders on the BSE.
India’s Mutual Funds had a 9.45% stake in Star Health at the end of the March quarter, according to the shareholding pattern, prominent among them being HDFC Trustee (3.97%) and ICICI Prudential Pharma Healthcare Fund (4.8%).
ICICI Prudential Life Insurance also has a 4.7% stake in the company.
Among other prominent public shareholders in Star Health include the Massachusetts Institute of Technology (MIT), Government Pension Fund Global, WF Asian Reconnaissance Fund, among others.
Star Health Insurance was promoted by the late Rakesh Jhunjhunwala and currently by his family. The veteran investor is still classified as a promoter in the shareholding pattern with a 14.1% stake, with another 3.04% stake in the name of his wife Rekha Jhunjhunwala. Safecrop Investments India LLP, also classified as a promoter, has a 40.29% stake.
Shares of Star Health Insurance went public in 2021 and have been underperformers since then. The price at which SBI Mutual Fund acquired its stake, is more than 50% below its IPO price of ₹900 per share. The stock ended little changed on Wednesday, at ₹428.2, having declined 8% in the last one month.