HDFC Mutual Fund gets IRDAI nod to increase Star Health stake to 9.99%

Star Health and Allied Insurance Company on Monday said the Insurance Regulatory and Development Authority of India (IRDAI) has approved HDFC Mutual Fund's proposal to acquire up to 9.99% of its paid-up share capital, including the 4.49% stake the fund house already holds.

The approval allows HDFC Mutual Fund's schemes to increase their combined holding by up to 5.50 percentage points from the existing level.

In a regulatory filing dated November 9, Star Health said the insurance regulator had granted its approval through a letter issued the same day.

"We wish to inform you that Insurance Regulatory and Development Authority of India (IRDAI) vide letter dated 09 November 2026 has approved the acquisition of equity shares of the Company by the schemes of HDFC Mutual Fund upto 9.99% (including the current investment, which amounts to 4.49%) of the paid up capital of the Company," Star Health said in an exchange filing.

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The insurer made the disclosure under Regulation 30 of the Securities and Exchange Board of India's Listing Obligations and Disclosure Requirements Regulations, 2015.

HDFC Mutual Fund's existing stake

According to Star Health's shareholding pattern for the quarter ended September 30, 2026, HDFC Mutual Fund held approximately 2.64 crore shares, representing 4.49% of the company's equity capital.

Mutual funds collectively held 10.43% of the insurer at the end of September.

Star Health's promoters held approximately 58% of the company. Safecrop Investments India LLP was the largest shareholder with a 40.17% stake, followed by Sitara Partners LLP with 13.29%.

Among other institutional investors, ICICI Prudential Life Insurance held 4.32%, while SBI Balanced Advantage Fund held 3.31%.

The development comes less than two weeks after Star Health reported its financial results for the September quarter of FY2026–27.

The standalone health insurer reported a profit after tax of Rs 265 crore for the quarter, compared with around Rs 80 crore in the corresponding period last year, marking a 233% increase.

Its normalised profit after tax rose 70% year-on-year to Rs 390 crore.

The company's underwriting profit improved to Rs 99 crore from a loss of Rs 40 crore a year earlier, marking its fifth consecutive quarter of improvement in underwriting profitability.

Gross written premium increased 19% year-on-year to Rs 5,275 crore during the quarter.