Star Health Stake: HDFC Mutual Fund Gets IRDAI Nod to Raise Holding to 9.99%
Star Health could see a higher investment holding from HDFC Mutual Fund following IRDAI’s approval. The regulator’s nod allows the fund house to raise its stake to 9.99%.
Star Health has received regulatory attention as HDFC Mutual Fund gets IRDAI approval to increase its stake in the insurer to 9.99%.
NEW DELHI – The Insurance Regulatory and Development Authority of India (IRDAI) has approved HDFC Mutual Fund to increase its stake in Star Health and Allied Insurance Company Limited to up to 9.99% of the insurer’s paid-up capital, according to a regulatory filing by the company.
The approval also covers HDFC Mutual Fund’s existing shareholding of 4.49%, allowing it to raise its investment in the health insurer within the approved limit.
Star Health: What the Approval Covers
The regulator’s approva; allows HDFC Mutual Fund’s schemes to add up to 5.50 percentage points to their present holding. The approval sets a ceiling on how much the schemes can hold. It is not an announcement that they have already bought additional shares.
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Star Health: HDFC Mutual Fund’s Current Position in Star Health
Star Health’s shareholding pattern for the quarter ended September 30, 2026, shows HDFC Mutual Fund holding about 2.64 crore shares, or 4.49% of the company’s equity capital. Mutual funds as a group held 10.43% of the insurer at the end of September.
Promoters held roughly 58% of the company. Safecrop Investments India LLP is the largest shareholder with 40.17%, followed by Sitara Partners LLP with 13.29%. Among other institutional holders, ICICI Prudential Life Insurance held 4.32% and SBI Balanced Advantage Fund held 3.31%.
Insurers in India require regulatory clearance before an investor can cross specified shareholding thresholds. Similar approvals have been granted to other institutional investors in the sector. In February 2025, IRDAI approved the acquisition of Star Health shares by ICICI Prudential Mutual Fund up to 9.95%, including its then-existing investment.
Star Health’s Recent Financial Performance
The approval comes less than two weeks after Star Health reported results for the September quarter of FY2026-27. The standalone health insurer posted a profit after tax of Rs 265 crore, compared with about Rs 80 crore in the same period last year, an increase of 233%. Normalised profit after tax rose 70% year-on-year to Rs 390 crore.
Underwriting profit stood at Rs 99 crore, against a loss of Rs 40 crore a year earlier. This was the fifth consecutive quarter of improvement in underwriting profitability. Gross written premium grew 19% year-on-year to Rs 5,275 crore.
About Star Health and Allied Insurance
Star Health and Allied Insurance Company Limited was established in 2006 and is India’s first standalone health insurer. Its shares made their stock market debut on December 10, 2021. The company is headquartered in Chennai, with its registered office at No. 1, New Tank Street, Valluvar Kottam High Road, Nungambakkam.
