SBI Mutual Funds Share Price: Fund House Buys ₹672 Crore Stake in Star Health

Market Movement Snapshot

SBI Mutual Fund, India's largest asset management company, made a noteworthy move in the insurance sector on Wednesday. In a significant block deal, it acquired a major stake in Star Health and Allied Insurance Company Ltd.

• Acquisition Value: ₹672 Crore
• Share Volume: 1.6 Crore shares
• Average Price per Share: ₹420
• Stake Acquired: 2.72%

The stock of Star Health remained relatively flat after the deal, closing the day at ₹428.2. However, the scrip has declined 8% in the last month, signaling a recent bearish trend.

Main Development: SBI MF Steps Into Star Health

The key highlight is the fund house's entry into Star Health's shareholding list. According to the March quarter data, SBI Mutual Fund previously held less than 1% (if any) and was not among the top shareholders. This new stake marks a strategic shift, making SBI MF a significant investor in the company.

The investment also adds diversity to the firm's list of mutual fund holders, which stood at 9.45% overall as of the end of March.

Company Shareholding Breakdown

Here is a detailed look at the major stakeholders in Star Health Insurance:

• HDFC Trustee: 3.97%
• ICICI Prudential Pharma Healthcare Fund: 4.8%
• ICICI Prudential Life Insurance: 4.7%
• Promoters:
  • Rakesh Jhunjhunwala (classified promoter): 14.1%
  • Rekha Jhunjhunwala: 3.04%
  • Safecrop Investments India LLP: 40.29%

Additional prominent public shareholders include:

• Government Pension Fund Global
• Massachusetts Institute of Technology (MIT)
• WF Asian Reconnaissance Fund

This wide institutional backing underscores the company's relevance in the financial ecosystem despite recent underperformance.

Company Details: Star Health at a Glance

• IPO Year: 2021
• IPO Price: ₹900 per share
• Current Price: ₹428.2 (as of the last close)
• Recent Performance: Down 8% in the past 1 month
• Sector: Health Insurance
• Promoter Legacy: Founded by the late Rakesh Jhunjhunwala, now promoted by his family and associates

Despite being a notable name in the health insurance space, Star Health's share price has declined by over 50% from its IPO valuation, indicating a prolonged period of underperformance.

Summary of the Article

SBI Mutual Fund's ₹672 Crore investment in Star Health Insurance has made waves in the financial market. By acquiring a 2.72% stake at ₹420 per share, SBI MF joins the ranks of prominent institutional investors backing the insurer.

This strategic acquisition comes at a time when Star Health's stock is significantly below its IPO price, indicating a potential long-term positioning by the fund house.

Although the share price showed minimal change post-transaction, market watchers are closely observing how this development could reshape institutional confidence in Star Health in the future.