Star Health and Allied Insurance shares list on stock exchanges; rally after initial loss of over 6 percent

The stocks later rallied around to be priced at Rs 900.35, rising by 6.07 percent from its opening price on the BSE.

FP Trending December 10, 2021 16:00:02 IST
Star Health and Allied Insurance shares list on stock exchanges; rally after initial loss of over 6 percent

Representational image. PTI

The shares of Star Health and Allied Insurance Company were listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE)  today, 10 December, with the scrips plunging over six percent at the start of trading. After the Opening Bell, the stocks were trading at Rs 845.00 per share on the NSE, with a decline of 6.11 percent compared to its issue price of Rs 900 apiece.

The stocks later rallied around to be priced at Rs 900.35, rising by 6.07 percent from its opening price on the BSE.

On the NSE the share was priced at Rs 901.50, with a rise of 0.17 percent till 1:10 pm.

The initial weak listing was expected by market watchers as the company had failed to attract much interest from investors during its three-day initial share sale.

Star Health is owned by investors such as Rakesh Jhunjhunwala, and Westbridge Capital. On the last day of the IPO, 2 December, the leading private health insurer received a subscription of 79 percent. Ace investor Rakesh Jhunjhunwala owns a 14.98 percent stake in Star Health. On listing, the private insurance company had a market capitalization of Rs 48,850 crore.

The Rs 7,249 crore IPO failed to raise the announced amount and witnessed a hollow response of investors.

Qualified Institutional Buyers (QIB) had subscribed 1.03 times of the IPO size reserved for them. Retailers had bid 1.10 times on the IPO portion reserved for them. Non-Institutional Investors (NII) and employees of the firm ignored the bid and did not subscribe to their reserved portion of the IPO.

Start Health and Allied Insurance’s profitability hit during the COVID-19 pandemic due to higher claims. An operating loss of Rs 1,071 crore was reported by the company in the financial year 2020-21. However, it had churned out a profit Rs 360.8 crore and Rs 164.7 crore in the fiscal year 2019-20 and 2018-19.

Star Health and Alliance Insurance Company is a Chennai-based firm which began its operations in 2006. The leading private health insurer has a market share of 15.8 percent (fiscal 2021).

Updated Date:

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