Star Health shares in focus: Madison India Capital exits firm, sells over 1% stake for ₹299 crore

Madison India Capital, through its affiliate MIO Star, offloaded 67.72 lakh equity shares, representing a 1.15% stake in Chennai-based health insurer Star Health and Allied Insurance, as per the bulk deal data available on the NSE.

The transaction was valued at around ₹298.67 crore and was executed at a price of ₹441.01 apiece.

Meanwhile, PI Opportunities AIF V LLP, an affiliate of Premji Invest, bought 45.35 lakh shares, or a 0.77% stake, for ₹200 crore.

The shares were acquired at an average price of ₹441 apiece.

Details of the other buyers of Star Health and Allied Insurance's shares could not be ascertained on the exchange, said a PTI report.

Shares of Star Health & Allied Insurance Company on Tuesday ended 1.67% higher at ₹450 apiece on the NSE.

In May 2024, three entities, including Madison India Capital, divested a combined 7.06% stake in health insurer Star Health and Allied Insurance for ₹2,210 crore.

In a separate development, a statement said on Monday, September 15, that many member hospitals of the Association of Healthcare Providers of India (AHPI), including some of the large tertiary care hospital chains, are facing an alarming situation, where 'Star Health Insurance' has suspended cashless services, leaving hospitals to manage distressed patients.

Hospitals and nursing homes, part of the Indian Medical Association Hospital Board, also share the same concerns, AHPI said in the statement.

Based on information available with AHPI, cashless services have been suspended in an arbitrary manner in many hospitals, and to name a few – Care Hospitals (Ramnagar, Vizag), Manipal Hospital (Delhi and Gurugram), Max Hospitals (North India), Metro Hospital (Faridabad), Medanta Hospital (Lucknow), Rajiv Gandhi Cancer Hospital (New Delhi), Sarvodaya Hospital (Faridabad) and Yatharth Hospitals, it said.