Star Health IPO: Latest GMP, subscription status on last day of issue
Premium- Star Health IPO has been subscribed just 0.20 times till the second day of subscription on Wednesday
The initial public offer (IPO) of Star Health and Allied Insurance Company Limited was subscribed 20% till the second day of subscription on Wednesday. The three-day share sale opened for subscription on Tuesday and will conclude today. The price band has been set at ₹870-900 per share for its initial public offering (IPO).
As of 10:50 am on day 3 of the bidding, Star Health IPO has been subscribed 022 times with the category for retail investors booked 0.94x, non-institutional investors and QIBs 0.07 times each, BSE data showed.
The IPO comprises fresh issue of equity shares worth ₹2,000 crore and an offer for sale of up to 58,324,225 equity shares by promoters and existing shareholders. The company on Monday said it has raised a little over ₹3,217 crore from anchor investors ahead of its IPO.
As per market observers, Star Health shares premium (GMP) have come down to ₹7 in the grey market today. The company plans to list on leading stock exchanges BSE and NSE on December 10.
"We view STAR’s valuations at 8.2x Sep 2021 BV favorably in comparison to similar levels for ICICI Lombard, as we expect STAR to continue to grow at much higher growth rates while maintaining decent ROE in the post covid era. We recommend subscribing to the issue from a long term perspective," said Nirmal Bang in IPO note.
Star Health, leading private health insurer in the country, is owned by a consortium of investors like Westbridge Capital and Rakesh Jhunjhunwala. Proceeds from the fresh issue will be used to augment the company's capital base.
Incorporated in 2006, Star Health and Allied Insurance Company Ltd (Star Health) is one of the largest private health insurers in India. The company primarily focuses on the retail health market segment. It offers a range of flexible and comprehensive coverage options for retail health, group health, personal accident, and overseas travel.
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