Star Health's IPO subscribed 79% on the last day, QIB portion fully filled

IPO News: According to stock market data, bids were received for a total of 3,56,02,544 shares on the last day on the offer of 4,49,08,947 shares of Star Health.

Star Health's IPO subscribed 79% on the last day, QIB portion fully filled


The initial public offering (IPO) of Star Health and Allied Insurance Company was subscribed 79 percent on the last day. According to stock market data, bids were received for a total of 3,56,02,544 shares on the last day of the offer of 4,49,08,947 shares of the company. The company's retail segment was subscribed 1.10 times in individual investors, 1.03 times in the case of qualified institutional buyers (QIBs) and 19 percent in the non-institutional investors segment. Under the IPO, new shares worth Rs 2,000 crore have been issued and 5,83,24,225 equity shares have been placed under the Offer for Sale (OFS).

The price band for the IPO has been fixed at Rs 870 to Rs 900 per share. The company had raised Rs 3,217 crore from anchor investors on Monday. The company had allotted 3,57,45,901 equity shares to 62 anchor investors. These were allotted at a price of Rs 900 per share, totaling Rs 3,217.13 crore.

Star Health had allotted 75 per cent of its shares to institutional investors. Whereas non-institutional investors will get 15 per cent shares in the stake sale. The retail quota was reserved at 10 per cent.

Big Bull's 14.98 percent stake

Big Bull Rakesh Jhunjhunwala has about 8.23 ​​crore or 14.98 percent stake in Star Health. Over a period of 32 months, his investments will grow by 5.78 times, starting from March 2019, when he bought his stake in the insurance company for the first time. Star Health is a standalone health insurance company with a market share of 15.8 per cent in the segment in terms of size.

3rd largest IPO of the current financial year

Star Health will get Rs 7,249.18 crore from the public issue on the upper price band. This is the third largest IPO in issue size in the current year 2021. The proceeds from the IPO will be used to increase the company's capital base and maintain its solvency level.

Star Health offers flexible and comprehensive coverage options primarily for retail health, group health, personal accident and overseas travel. The company claims to be the largest private health insurer in India with a market share of 15.8 percent in the Indian health insurance market in FY 2011.

was established in 2006

Established in 2006 as India's first standalone health insurance provider, Star Health provides health, personal accident and overseas travel insurance. The Investor Consortium of Westbridge Capital, Rakesh Jhunjhunwala and Madison Capital had in August 2018 agreed to acquire over 90 per cent stake in Star Health from existing investors Star Health Investments Pvt.

Star Health will be the fourth private sector insurance company to be listed on Indian stock exchanges after HDFC Life Insurance Company Limited, ICICI Prudential Life Insurance and ICICI Lombard General Insurance.

issue manager

Kotak Mahindra Capital Company, Axis Capital, BofA Securities India, Citigroup Global Markets India, ICICI Securities, CLSA India, Credit Suisse Securities (India), Jefferies India, Ambit, DAM Capital Advisors, IIFL Securities and SBI Capital Markets were the managers of the issue.

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