Retail investors led bidding in the Rs 7,247-crore initial public offering of Star Health and Allied Insurance Co., which is backed by billionaire investor Rakesh Jhunjhunwala.
The issue was subscribed 12% at the end of the first day, with the portion meant for retail investors subscribing 64%.
The private health insurer's IPO comprises a fresh issue and an offer for sale, according to its red herring prospectus. It will sell shares at Rs 870-900 apiece, seeking a market value of Rs 51,806 crore at the upper end of the price band.
Of the net offer, 75% is reserved for qualified institutional buyers, 15% for non-institutional buyers, and 10% for retail investors.
Promoter and promoter group shareholding will fall to 58.4% after the share sale, while the public will own the rest. Jhunjhunwala, one of the promoters, will not dilute his stake.
The Chennai-based company will use the proceeds from the fresh issue to augment capital base and maintain solvency levels.
Subscription Details: Day 1
The IPO was subscribed 0.12 times or 12% as of 5 p.m. on Nov. 30.
Institutional investors: 0 times.
Non-institutional investors: 0.01 times.
Retail investors: 0.64 times.
Employees: 0.03 times.
Research Reports On Star Health IPO:
Investment Rationale, Future Growth Strategies, Key Strengths, Risks: KRChoksey
Play On Structural Health Insurance Opportunity: ICICI Direct
Watch BloombergQuint's IPO Adda with Rakesh Jhunjhunwala-backed Star Health Insurance Management:
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