Rekha Jhunjhunwala transfers Star Health shares to promoter LLP in succession-linked move; stock slips

Mumbai: Shares of Star Health and Allied Insurance Company fell more than 1 per cent on Friday after the company’s June-quarter shareholding pattern reflected a sharp change in Rekha Jhunjhunwala’s direct holding. However, the change was the result of a succession-related transmission and an off-market transfer of shares to promoter entity Sitara Partners LLP, and not a sale or exit by the promoter group.

Rekha Jhunjhunwala’s direct stake declined after 7.82 crore equity shares were transferred to Sitara Partners LLP, a promoter entity in which she is a Designated Partner, following the transmission of shares inherited from the estate of late investor Rakesh Jhunjhunwala. The company stressed that the transaction did not involve any open-market sale, third-party disposal, or reduction in the promoter group’s overall holding.

However, the transfer followed approval from the Insurance Regulatory and Development Authority of India (IRDAI) for the transmission of 8.28 crore shares previously held by late Rakesh Jhunjhunwala under the probate of his estate. Pursuant to this process, 7.82 crore shares were transferred off-market to Sitara Partners LLP on June 24, 2026, following which the LLP held 13.29 per cent of Star Health’s equity share capital.

The Jhunjhunwala family’s association with Star Health predates the company’s stock market debut.

The insurer’s red herring prospectus (RHP) for its 2021 initial public offering had shown that the late Rakesh Jhunjhunwala owned a 14.98 per cent stake in the company.

The family’s shareholding has undergone several changes since then. Rekha Jhunjhunwala increased her personal stake from 3.04 per cent in the September quarter of FY26 to 15.57 per cent by the December quarter before reducing it sharply in the June quarter of FY27.

As per the latest corporate shareholding disclosures, Rekha Jhunjhunwala has publicly disclosed investments in 26 listed companies with a combined portfolio value of more than Rs 47,085.4 crore.

Star Health shares have staged a strong recovery over the past year after falling to a 52-week low of Rs 416.05 in July 2025.

The stock rallied nearly 50 per cent to touch a 52-week high of Rs 623.45 on July 14, 2026.

IANS