New Delhi: Shares of Star Health and Allied Insurance Co made a lukewarm debut on the stock markets on Friday. The stock, backed by billionaire investor Rakesh Jhunjhunwala, was discounted 6.11 percent from the issue price of Rs 900.
On the NSE platform, the price opened at Rs 845; while on BSE it started trading at Rs 848.80.
The market cap of the company was Rs 48,850.32 crore.
The country’s largest private health insurer has reduced the size of its initial public offering (IPO) to Rs 6,400 crore from Rs 7,249 crore earlier after a moderate response to the IPO last week.
Star Health’s IPO was not fully subscribed last week, pointing to weak investor demand for India’s third-largest listing this year.
An IPO must have at least 75 percent subscription and the QIB part must have at least 90 percent subscription to continue.
“Given the signing of the issue, Star Health was expected to be flat. Financial performance was impacted in FY21 (2020-21), but the sector’s long-term growth prospects remain promising,” Ajit Mishra, vice president, research, Religare Broking, tells Reuters news agency.
Mr Jhunjhunwala, who has an interest of almost 15 percent in the insurer, did not offer any shares for sale during the IPO.
Star Health, founded in 2005, offers coverage options for health, group health, personal accident and foreign travel insurance.
Meanwhile, stock indices were trading in the red, with the 30-stock Sensex losing more than 171 points to 58,635.67 points; while the broader Nifty Index fell more than 37 points to 17,479.80 points.