Mumbai, July 24 (IANS) 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, in a stock exchange filing, the company clarified that 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.

The insurer said 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.

“The movement in the shareholding of the Promoter and Promoter Group during the quarter ended June 30, 2026 arises from the transmission of equity shares held by Late Rakesh Jhunjhunwala,” it said in its exchange filing.

“The movement referred to in the said news item therefore constitutes an inter-se devolution within the Promoter and Promoter Group pursuant to the settlement of the estate of Late Rakesh Jhunjhunwala,” the company added.

The company further clarified that 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.

“By its letter Sitara Partners LLP, a Promoter of the Company has intimated the Company, with copies to BSE Limited and the National Stock Exchange of India Limited, that as on June 24, 2026 it holds 7,82,13,958 equity shares of the Company representing 13.2887 per cent of the total issued and paid-up share capital,” the insurer stated.

The clarification came after market participants interpreted the June-quarter shareholding pattern as indicating that Rekha Jhunjhunwala had sold nearly 7.38 crore shares.

--IANS

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