Rakesh Jhunjhunwala-Backed Star Health Shares Debut At 6% Discount

Shares of Star Health and Allied Insurance Co made a tepid debut at the exchanges on Friday. The stock, backed by billionaire investor Rakesh Jhunjhunwala, got listed at 6.11 per cent discount over its issue price of Rs 900.

Rakesh Jhunjhunwala-Backed Star Health Shares Debut At 6% Discount

Star Health got listed at 6.11 per cent discount over its issue price of Rs 900.

New Delhi: Shares of Star Health and Allied Insurance Co made a tepid debut at the exchanges on Friday. The stock, backed by billionaire investor Rakesh Jhunjhunwala, got listed at 6.11 per cent discount over its issue price of Rs 900.

On the NSE platform, the scrip opened at Rs 845; while on BSE, it started trading at Rs 848.80.

The company's market capitalisation stood at Rs 48,850.32 crore.

The country's largest private health insurer has cut the size of its initial public offering (IPO) to Rs 6,400 crore from Rs 7,249 crore earlier after a subdued response to the IPO last week.

Star Health's IPO failed to get fully subscribed last week, signalling weak investor demand for India's third-biggest listing this year.

An IPO has to get at least 75 per cent subscription and the QIB portion has to get at least 90 per cent subscription, for it to sail through.

"Considering the undersubscription of the issue, the flat listing of Star Health was expected. The financial performance was impacted in FY21 (2020-21), but long-term growth prospects of the industry remain quite promising," Ajit Mishra, vice-president, research, Religare Broking, told news agency Reuters.

Mr Jhunjhunwala, who owns a near 15 per cent stake in the insurer, did not put up any shares for sale in the IPO.

Incorporated in 2005, Star Health offers coverage options for retail health, group health, personal accidents and overseas travel insurance.

Meanwhile, the equity indices was trading in the red, with the 30-share Sensex shedding over 171 points to 58,635.67 points; while the broader Nifty index down over 37 points to 17,479.80 points.

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