Rekha Jhunjhunwala's Star Health Stake Drops To 3.04%; Company Clarifies Promoter Reshuffle

Shares of Star Health and Allied Insurance Company declined more than 1% on Friday after the insurer's June-quarter shareholding pattern showed ace investor Rekha Jhunjhunwala's personal stake at 3.04%, down from 15.57% at the end of the March quarter.

The latest shareholding data also showed that the promoter holding under Rakesh Jhunjhunwala and Associates stood at nil as of June 30, 2026, compared with 1.55% at the end of the previous quarter.

However, the company clarified that the changes reflected succession-related transmission of shares following the demise of Rakesh Jhunjhunwala and an off-market transfer within the promoter group, and did not represent an open-market sale or an exit by the promoter group.

Succession-Led Transfer, Not A Market Sale

Star Health said the Insurance Regulatory and Development Authority of India (IRDAI), through its communication dated April 6, 2026, approved the transmission of 8,28,82,958 equity shares previously held by the late Rakesh Jhunjhunwala.

The transmission was carried out in accordance with the probate granted for his estate and applicable legal and regulatory requirements.

Following the transmission, 7,82,13,958 equity shares were transferred to Sitara Partners LLP through an off-market transaction on June 24, 2026.

The company said Sitara Partners LLP is a promoter entity in which Rekha Jhunjhunwala is a Designated Partner, adding that the transaction was not an open-market sale, not a transfer to a third party and did not constitute a promoter group exit.

Regulatory filings identify Sitara Partners LLP as the acquirer, while Rekha Jhunjhunwala and the Jhunjhunwala family trusts have been disclosed as Persons Acting in Concert (PACs). Following the transfer, Sitara Partners LLP held a 13.2887% stake in Star Health.

Separately, the company informed the BSE and the NSE through its board meeting outcome dated June 26, 2026, about the transmission of the late Rakesh Jhunjhunwala's shareholding pursuant to the probate issued by the Bombay High Court on December 18, 2023.

Long-Term Investment Continues

The Jhunjhunwala family's association with Star Health predates the company's stock market listing. The company's 2021 IPO red herring prospectus (RHP) showed that the late Rakesh Jhunjhunwala held a 14.98% stake in the insurer before its listing.

Rekha Jhunjhunwala's personal holding had increased from 3.04% in the September quarter of FY26 to 15.57% by the December quarter, before returning to 3.04% in the June quarter following the succession-related restructuring.

According to the latest public disclosures, Rekha Jhunjhunwala holds investments in 26 listed companies with a combined portfolio value of more than ₹47,085.4 crore. Her portfolio includes Titan, Tata Motors, Metro Brands, Nazara Technologies, NCC, Canara Bank, Crisil, Federal Bank, Fortis Healthcare, Indian Hotels Company, Tata Communications and Wockhardt, among others.

After falling to a 52-week low of ₹416.05 in July 2025, Star Health shares rallied nearly 50% to touch a 52-week high of ₹623.45 on July 14, 2026. The stock has gained 33% over the past year.