WestBridge Initiates Process to Exit Stake in Star Health
WestBridge Capital has begun the process of exiting its significant stake in Star Health Insurance Company, according to a report by Moneycontrol. The private equity firm reportedly approached investment banks for proposals on managing the sale, with JPMorgan identified as the preferred adviser. WestBridge holds approximately 40% of Star Health through Safecrop Investments India, a consortium that includes Rakesh Jhunjhunwala and Madison Capital. The report suggests potential reasons for the exit include regulatory constraints under IRDAI norms, which limit promoters to holding only one insurance license. WestBridge is also recognized as a promoter in Kiwi General Insurance, launched earlier this year with industry veterans Neelesh Garg and Saurav Jaiswal. Star Health has declined to comment on market speculation regarding the stake sale. Since its 2018 acquisition of a majority stake (over 90%), WestBridge's ownership has gradually decreased following Star Health’s IPO in December 2021.
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Topics: insurance sector investment exit strategy private equity