Star Health shares recover after discounted listing

“Star Health Insurance’s IPO received a bad response due to expensive valuations. Therefore, we see a bad list. The long-term outlook for Star industry and health insurance is bright. Therefore, we can expect lower purchase interest rates, but it is difficult to say the exact level. Those who have applied for this IPO should hold onto it for the long term while those looking for a new IPO should give some time to know how well it is managing to attract demand, ”said Santosh Meena, head of the IPO. research, Swastika Investmart Ltd.

The three-day initial public offering (IPO) of India’s largest private health insurer fell short as investors questioned whether the upper price range of ??900 was justified after Star Health suffered a loss in the year ended March 2021.

Star Health has reduced the size of its sales offering (OFS) to ??4,400 crore ??5,249 crore after its initial public offering received a lukewarm response during its subscription period. The IPO of the country’s largest private health insurance company was only 79% underwritten. Backed by billionaire stock investor Rakesh Jhunjhunwala, the company had valued its IPO between ??870-900 per share.

SBI Life Insurance Co, HDFC Life Insurance Co, ICICI Prudential Life Insurance Co and ICICI Lombard General Insurance Co are among the insurance companies listed on the Indian stock exchanges.

Investors are growing increasingly skeptical of IPOs as a record year for Indian listings draws to a close. Indian IPOs that have raised at least $ 500 million this year have risen an average of 17% on their first day of trading, according to data compiled by Bloomberg. Of the 10, half saw a gain on day one, including food delivery start-up Zomato Ltd. and beauty retailer FSN E-Commerce Ventures Ltd.