Ace investor Rekha Jhunjhunwala has significantly increased her promoter stake in star health insurance during the December quarter, demonstrating continued confidence in the health insurance company despite recent stock underperformance.

Substantial Stake Enhancement

Jhunjhunwala's shareholding in Star Health and Allied Insurance Company rose dramatically to 15.57% in the December quarter, up from 3.04% in the September-ended quarter. This represents a substantial increase of 1,253 basis points, according to BSE shareholding data where she is classified as part of the promoter group.

Concurrent Promoter Changes

Simultaneously, the company witnessed a stake reduction of 1,255 basis points to 1.55% in the October to December quarter from 14.10% in Q2FY26. The late Rakesh Jhunjhunwala is also listed as a promoter in the company, highlighting the continued involvement of the Jhunjhunwala family in the health insurance sector.

Stock Performance Challenges

Jhunjhunwala's additional stake acquisition comes amid continuous underperformance in Star Health shares. The stock has declined nearly 6% over the past 12 months, reflecting broader sectoral challenges. This performance aligns with the healthcare sector's struggles, as the Nifty Pharma index has fallen 3% during the same period, contrasting with the Nifty's 8% growth.

Shares of Star Health are currently trading below their 50-day and 200-day simple moving averages of ₹470.00 and ₹445.00, respectively, according to market data.

Company Financial Performance

Star Health reported mixed financial results in the September-ended quarter. The company's standalone net profit declined significantly by 51% to ₹55.00 crore compared to ₹111.00 crore in the year-ago period. However, total revenue showed positive growth, increasing 8% to ₹4,381.00 crore from ₹4,061.00 crore in the corresponding quarter of the previous financial year.

Business Operations and Portfolio Context

Star Health is a Chennai-headquartered company providing comprehensive health insurance services. The company operates an extensive network of 14,000 hospitals and maintains over 850 branch offices across the country.

As per the latest corporate shareholdings data, Rekha Jhunjhunwala publicly holds 26 stocks with a combined net worth exceeding ₹44,238.00 crore. Her diversified portfolio includes notable holdings in:

• Aptech
• Sundrop Brands
• Valor Estate
• Escorts Kubota
• Federal Bank
• Fortis Healthcare

The significant stake increase in Star Health demonstrates Jhunjhunwala's continued confidence in the health insurance sector's long-term prospects, despite current market challenges and the company's recent financial performance pressures.

Star Health Insurance has received formal requests from two promoter group entities seeking reclassification to public shareholder status under SEBI regulations. The insurance company informed stock exchanges on January 19, 2026, about the reclassification applications submitted by Ebono Private Limited and GS E-commerce Private Limited.

Entities Seeking Reclassification

The company disclosed details of the entities requesting status change in its regulatory filing:

Both entities currently hold no shares in Star Health and Allied Insurance Company Limited, despite their promoter group classification.

Background and Rationale

The reclassification request originates from changes in WestBridge AIF I's shareholding pattern. Both Ebono Private Limited and GS E-commerce Private Limited were originally classified as promoter group entities during Star Health's Initial Public Offering in December 2021. This classification was based on WestBridge AIF I, a promoter of Star Health, holding more than 20% equity share capital in both entities as per SEBI ICDR Regulations.

WestBridge AIF I, in its letter dated January 19, 2026, confirmed that it no longer holds more than 20% of the equity share capital in either entity. This change eliminates the original basis for their promoter group classification under Regulation 2(1)(pp)(iii) of SEBI ICDR Regulations.

Regulatory Compliance Confirmations

Both entities have provided comprehensive confirmations under Regulation 31A, Sub-Regulation 3(b) of SEBI LODR Regulations. The confirmations include:

• No collective holding of more than 10% total voting rights in Star Health
• No direct or indirect control over company affairs
• Absence of special rights through formal or informal arrangements
• No board representation or nominee directors
• No Key Managerial Personnel in the company
• Clean regulatory status with no wilful defaulter or fugitive economic offender tags

Next Steps and Approvals

Star Health has committed to processing the reclassification requests through proper regulatory channels. The company will seek necessary approvals from multiple stakeholders including the Board of Directors, BSE Limited, National Stock Exchange of India Limited, and company shareholders.

The reclassification process follows Regulation 31A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Upon approval, both entities will be removed from the promoter group category in future shareholding patterns filed with stock exchanges.

Corporate Communication

Company Secretary and Compliance Officer Jayashree Sethuraman signed the regulatory filing submitted to both BSE (Scrip Code: 543412) and NSE (Symbol: STARHEALTH). The communication included copies of original request letters from all three parties - WestBridge AIF I, Ebono Private Limited, and GS E-commerce Private Limited.