The share allotment of Star Health IPO has been finalized and all eyes are now on the listing of its shares, which is likely to take place on Friday, December 10. Meanwhile, the private health insurer has cut the size of its offer for sale (OFS). 4,400 crore from 5,249 crore after a slow response to its initial public offering.
star health first public offer Failed to receive subscription in full till the close of bidding. The IPO of the country’s largest private health insurance company was subscribed only 79 percent. Backed by billionaire stock investor Rakesh Jhunjhunwala, the company had priced its IPO between 870-900 per share.
A new issue will now be included in the IPO 2,000 crore and an OFS of 48.89 million shares instead of the earlier planned 58.32 million shares by its existing promoters and shareholders. Safecrop Investments India LLP will now sell 29.85 million shares, not the 30.68 million shares already planned.
According to market observers, Star Health shares are bidding at a discount 60 in the gray market today.
Star Health, the leading private health insurance company in the country, is owned by a consortium of investors like Westbridge Capital and Rakesh Jhunjhunwala. The proceeds from the fresh issue will be used to enhance the capital base of the company. the company raised a bit 3,217 crore from anchor investors before its IPO.
Insurance companies listed on Indian stock exchanges include SBI Life Insurance Company, HDFC Life Insurance Company, ICICI Prudential Life Insurance Company and ICICI Lombard General Insurance Company.
