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Tata Capital Growth Fund, a private equity fund managed by Tata Capital, is planning to pick up stake in Chennai-based Star Health & Allied Insurance Company Ltd. The deal value is estimated to be around Rs 124 crore.
The country's first standalone health insurance company already backed by PE majors including ICICI Venture and Sequoia Capital.
While two sources directly involved in the deal confirmed that the fund has agreed to infuse the money for a minority stake, Star Health chairman-cum-managing director V Jagannathan said it was too early to comment.
The sources said the fund had agreed to infuse $23 million and in the next few weeks deal will be signed.
Sequoia Capital has invested around Rs 140 crore in Star Health Investments Pvt Ltd (an SPV floated to promote Star Health Insurance) for around 40 per cent, while ICICI Venture has invested Rs 130 crore for a 24 per cent stake directly. Some of the other major investors include Oman Insurance, and Essa Abdullah Alghuair.
The sources said the fund infusion was to support company's premium target for 2012-13.
According to the Insurance Regulatory and Development Authority, between April and December 2012, Star Health reported a 31 per cent drop in gross premium underwritten to Rs 586.05 crore from Rs 856.11 crore, a year ago.