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MUMBAI: Star Health & Allied Insurance’s stake sale process hit a roadblock with an investor, Ahmed Abdulla Ahmed Al Ghurair of UAE-based ETA Trading, moving the Madras High Court against the insurance company.

“Some investors of the ETA group who are shareholders of Star Health have moved the Madras High Court to ensure beneficial rights in the company and this is likely to take time to resolve,” said a source close to the development.

The shareholder owns a 6.17 per cent stake in Star Health.

Sequoia Capital, ICICI Venture and Tata Capital, as well as global private equity investor Apis are trying to exit the insurer through the stake sale. These four funds, along with Oman Insurance Company, own 70 per cent of Star Health, while the rest of the equity is held by ETA Trading.

Star Health didn’t respond to an email seeking comment until press time Tuesday. The ETA group could not be reached for comment.

Star Health is the largest standalone health insurance company in the country.

Private equity funds including WestBridge Capital, PremjiInvest and private sector general insurance company ICICI Lombard are eyeing the business of Star Health. ICICI Lombard, with a bid valuing the company at Rs 6,500 crore, is the frontronner. The sale process, which started almost six months ago, had seen 12 bidders, including private equity giants Bain Capital and Warburg Pincus and private sector insurer HDFC Ergo.

For Star Health, retail health insurance constitutes 92 per cent of the business, with the rest coming from corporate insurance.

The company, founded in 2006, writes policies on personal accident, mediclaim and overseas travels. It has a capital base of Rs 1,050 crore.

In 2017-18, it booked a profit of Rs 210 crore with an underwriting profit of Rs 50 crore. It reported growth of 40 per cent in gross written premium at Rs 4,145 crore in 2017-18.

Star Health stake sale hits a roadblock

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