Why ULIP mis-selling has become rampant ?
Why is there so much mis-selling of ULIP? How to avoid this mis-selling? Who should take ULIP?
Chennai-based Star Health Insurance and Allied Insurance Company has filed a draft red herring prospectus with the market regulator Securities and Exchange Board of India (Sebi) to raise funds via an initial public offering (IPO). The public offer comprises equity shares of the face value of Rs 10 each comprising a fresh issue aggregating up to Rs 2,000 crore and an offer for sale of up to 60,104,677 equity shares, including up to 30,683,553 equity shares by Safecrop Investments India LLP (promoter selling shareholder), up to 1,37,816 equity shares by Konark Trust, up to 9,518 equity shares by MMPL Trust (promoter group selling shareholders), up to 7,680,371 equity shares by Apis Growth 6 Limited, up to 4,110,652 equity shares by Mio IV Star and up to 7,438,564 equity shares by University of Notre Dame Du Lac, among others.
Jhunjhunwala backing
The company is backed by ace equity investor Rakesh Jhunjhunwala and private equity firm Westbridge Capital. The net proceeds from the fresh issue are proposed to be utilised for augmenting the company’s capital base.
Kotak Mahindra Capital Company, Axis Capital Limited, BofA Securities India, Citigroup Global Markets India Private and ICICI Securities are the global co-coordinators and book running lead managers to the issue.
Other details
CLSA India, Credit Suisse Securities (India) and Jefferies India are the book running lead managers to the issue.
Ambit Private Limited, DAM Capital Advisors (Formerly IDFC Securities Limited) and IIFL Securities are the co-book running lead managers to the issue. Shares of the company are proposed to be listed on BSE and NSE.