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<ul><li>The company’s shares started trading at ₹848 at 9:45 a.m.</li><li><keyword id="154694" type="General" weightage="20" keywordseo="star-health" source="Orion">Star Health</keyword>’s market cap was at ₹48,850 crore at the same time.</li><li>The company’s shares were subscribed only 79% in the three-day bidding process.</li></ul>Ace investor Rakesh Jhunjhunwala-backed Star Health and Allied Insurance listed on the stock exchanges today, December 10, at a discount of 5.69%. The company’s shares started trading at ₹848 at 9:45 a.m. The company’s market cap was at ₹48,850 crore at the same time. The price band for Star Health and Allied Insurance’s IPO was set at ₹870-900 per share. Star Health and Allied Insurance did not receive a great response from investors in the three days of IPO bidding process, between November 30 and December 2. The IPO bidding time is usually from 10 a.m. to 5 p.m. The issue has only been <a href="https://www.businessinsider.in/stock-market/news/star-health-insurance-ipo-subscribed-only-79-on-last-day-issue-extended-till-7-p-m-/articleshow/88053197.cms">subscribed 79% till 4:00 p.m</a>. on December 2, so the issue was extended till 7 p.m., for retail and eligible employees. For non-institutional investors the deadline had been extended till 6 p.m. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Investor Category </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Subscription (Times) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Qualified institutional investors </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.03 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Non-institutional investors </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">019 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Retail </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.10 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Employees </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">.10 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Overall </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.79 </td></tr></tbody></table> Star Health’s IPO received bids for 3.5 crore equity shares as against 4.4 crore shares available for subscription. The poor demand for the health insurer’s IPO coincides with the fact that analysts feel that Star Health and Allied Insurance’s IPO is overvalued. Non-institutional investors and employees of the company have skipped the IPO as well, indicated in the subscription figures. The IPO consisted of a fresh issue of shares worth ₹2,000 crore and an offer for sale of 5.83 crore shares by existing promoters and shareholders. The grey market premium (GMP), premium at which investors are comfortable buying the shares before it gets listed on a stock exchange, was at a negative ₹80 on December 10 before the listing. SEE ALSO <a href="https://www.businessinsider.in/stock-market/news/infosys-auto-stocks-rbl-bank-and-star-health-to-be-watched-out-for-on-december-10/slidelist/88198314.cms" data-type="tilCustomLink">Infosys, auto stocks, RBL Bank and Star Health to be watched out for on December 10</a> <a href="https://www.businessinsider.in/stock-market/news/metro-brands-ipo-opens-today-and-here-are-all-the-important-details-you-need-to-know/articleshow/88194908.cms" data-type="tilCustomLink">Metro Brands’ IPO opens today — here are all the important details you need to know</a> <a href="https://www.businessinsider.in/stock-market/news/shriram-properties-ipo-today-is-the-last-day-to-subscribe/articleshow/88188969.cms" data-type="tilCustomLink">Today is the last day to subscribe to Shriram Properties’ IPO — GMP at ₹12</a>

Rakesh Jhunjhunwala-backed Star Health lists at a discount of nearly 6%

<ul><li>The health insurer’s IPO was not fully subscribed even after extending the cut-off time of the issue by a few hours.</li><li>The IPO was subscribed just 79% as of 7 p.m., on December 2.</li><li>Following this development, <keyword id="154694" type="General" weightage="20" keywordseo="star-health" source="Orion">Star Health</keyword>’s grey market premium went into negative with ₹10 discount over the higher issue band of ₹900.</li></ul>After <a href="https://www.businessinsider.in/stock-market/news/star-health-insurance-ipo-subscribed-only-79-on-last-day-issue-extended-till-7-p-m-/articleshow/88053197.cms">failing to get fully subscribed </a>on the last day of the initial public offering (IPO), investment bankers at Rakesh Jhunjhunwala-backed Star Health and Allied Insurance have decided to cut down on offer for sale (OFS) shares, said a source close to the development. When promoters and shareholders in the company sell their stake to the general public, it is called an offer for sale. On the last day, i.e., December 2, since the issue was only subscribed 79%, the IPO was extended till 7 p.m. Even after pushing the cut-off time, the results were disappointing as the IPO was not fully subscribed. <a href="https://www.business-standard.com/article/markets/star-health-s-ipo-scrapes-through-as-investment-bankers-prune-ofs-component-121120201297_1.html">Business Standard </a>report said that the OFS portion will be reduced to around ₹4,400 crore from ₹5,249 crore earlier. The health insurer’s IPO pricing of ₹870 to ₹900 is one of the reasons why investors were not willing to pay the price as valuations seem pretty expensive to many. Analysts and brokerages had raised their concerns on the high valuations of the insurance company. In fact, the company was offering investors shares at five times the price that marquee investor <a href="https://www.businessinsider.in/stock-market/news/star-health-ipo-is-asking-for-five-times-the-price-that-rakesh-jhunjhunwala-paid-in-2018/articleshow/87979818.cms">Rakesh Jhunjhunwala had paid in 2018</a>. He had bought 7.68 crore shares for a 14% stake in Star Health and Allied Insurance at an average price of ₹156.28 per share. Following this development, Star Health’s grey market premium went into negative at ₹10 discount over the higher issue band of ₹900. Rajnath Yadav from Choice broking firm thinks the IPO could have been cheaper. “At a higher price band of ₹900, Star Health is demanding a market cap-to-net premium earned multiple of 10.3 times, which is at premium to the peer average. Moreover, the demanded valuations are at elevated premium to recent capital issuance,” said the analyst. Besides, the company reported a loss of ₹825 crore in FY21 for the first time in three years because the pandemic increased the number of claims leading <a href="https://www.financialexpress.com/money/insurance/general-insurance-companies-received-over-rs-5400-crore-covid-claims/2099458/">many insurers to post losses last year</a>. SEE ALSO:<a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/anand-rathi-ipo-was-subscribed-160-on-day-1-today-is-the-second-day-to-subscribe/articleshow/88060085.cms">Anand Rathi IPO was subscribed 160% on Day 1, today is the second day to subscribe</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/last-day-to-subscribe-to-tega-industries-ipo-gmp-at-410/articleshow/88053432.cms">Last day to subscribe to Tega Industries’ IPO — GMP at ₹410</a>

Poor demand for Star Health’s IPO forces investment bankers to cut down on promoter offerings; GMP at ₹10 discount

<ul><li>Star Health and Allied Insurance has received poor demand from investors as the IPO was not fully subscribed even after extending the cut off time on the last day.</li><li>Shares of the company are trading at a discount in the grey market.</li><li>The allotment of the IPO is scheduled to be today on December 7.</li></ul>Rakesh Jhunjhunwala-backed Star Health and Allied Insurance was a flop among investors as the initial public offering (IPO) was not fully subscribed even on the last of the after extending the cut off time by two hours. If you have subscribed to the IPO, remember the allotment of the IPO is scheduled for today, December 7. After <a href="https://www.businessinsider.in/stock-market/news/star-health-insurance-ipo-subscribed-only-79-on-last-day-issue-extended-till-7-p-m-/articleshow/88053197.cms">failing to get fully subscribed </a>on the last day of the initial public offering (IPO), investment bankers at Rakesh Jhunjhunwala-backed company had <a href="https://www.businessinsider.in/stock-market/news/poor-demand-for-star-healths-ipo-forces-investment-bankers-to-cut-down-on-promoter-offerings/articleshow/88065207.cms">cut down </a>on offer for sale (OFS) shares. On the last day, i.e., December 2, since the issue was only subscribed 79% and hence decided to pare some OFS sales. Later, the company managed to raise ₹6,410 crore, against its original target of ₹7,249 crore. The grey market premium of the company's shares continued to fall from day 1 of the IPO and is now at a discount. Here is how to check <keyword id="12683524" type="General" weightage="20" keywordseo="star-health-and-allied-insurance-ipo-allotment" source="Orion">Star Health and Allied Insurance IPO allotment</keyword> status on stock exchange website: <ul><li>Go to the <a href="https://www.bseindia.com/investors/appli_check.aspx">BSE website</a> or NSE website<a href="https://www1.nseindia.com/products/dynaContent/equities/ipos/ipo_login.jsp"> here</a>.</li><li>On BSE, Select 'Equity' and then from the dropdown, select ‘Star Health and Allied Insurance’.</li><li>Now, enter your application number and PAN.</li><li>Click on 'Search'.</li><li>Please note the details will only be available once the shares are allotted.</li></ul>You can also visit the registrar website (Link Intime India) to check your application status. <ul><li>Visit the registrar's website <a href="https://linkintime.co.in/MIPO/Ipoallotment.html">here</a>.</li><li>Click on 'Select company' and click on ‘Star Health and Allied Insurance’.</li><li>Once the company is selected, you will have to enter either your PAN detail, the application number, or the client ID.</li><li>Enter the captcha and click ’submit’.</li></ul>Once you hit 'submit', the status of your application will appear on the screen. Please ensure the details that you provide are correct. It will show the number of shares you subscribed to and the number of shares allotted to you. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/saas-firm-rategains-ipo-opens-tomorrow-should-you-invest/articleshow/88125982.cms">SaaS firm RateGain’s IPO opens tomorrow — should you invest?</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/nifty-50-stocks-like-indusind-bank-tata-consumer-bajaj-finserv-tcs-hcl-drop-more-than-3-on-fear-of-rising-omicron-cases/articleshow/88122922.cms">Nifty 50 goes below 17,000-mark on rising Omicron cases, fear of lockdown</a>

Star Health and Allied Insurance IPO — Here is how to check your allotment status, GMP at a discount

<ul><li>Star Health and Allied Insurance IPO has opened today and will close on December 2.</li><li>The health insurer’s IPO is looking to raise ₹7,249 crore through the public issue of shares.</li><li>The IPO consists of a fresh issue of shares worth ₹2,000 crore and an offer for sale of 5.83 crore shares by existing promoters and shareholders.</li><li>The company is fetching a premium of ₹10 over the upper price band of ₹900 in the grey market.</li></ul>Health insurance company Star Health and Allied Insurance, which is backed by marquee investors like Rakesh Jhunjhunwala and Westbridge Capital, has opened its initial public offering (IPO) today and will last till December 2. The company is looking to raise ₹7,249 crore through the public issue of shares. The price band of the IPO is ₹870-900 per share. The IPO consists of a fresh issue of shares worth ₹2,000 crore and an offer for sale of 5.83 crore shares by existing promoters and shareholders. Also, the company is fetching a premium of ₹10 over the upper price band of ₹900 in the grey market. Here are some of the important details of the IPO: <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Issue details </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Price band </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">₹870 to ₹900 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">IPO open date </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">November 30 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">IPO close date </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">December 2 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Allotment date </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">December 7 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Initiation of refunds </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">December 8 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Credit of shares to demat account </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">December 9 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">IPO listing date </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">December 10 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Minimum lot </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">16 </td></tr></tbody></table> While most analysts <a href="https://www.businessinsider.in/stock-market/news/star-health-ipo-is-asking-for-five-times-the-price-that-rakesh-jhunjhunwala-paid-in-2018/articleshow/87979818.cms">suggest subscribing to the IPO for the long term</a>, some are cautious about the high valuations. Angel One broking firm likes the price as it says the valuations appear fair considering its positioning. “Star Health stands out among other standalone health insurers in terms of size, strong growth rates and better operational performance which is reflected in pre-Covid numbers for the company. The valuations commanded by Star Health are in-line with recent deals in the segment and appear fair considering its positioning. Hence, we recommend ‘subscribe’ from a long-term perspective only,” said the broking firm. Rajnath Yadav from Choice broking firm thinks the IPO could have been cheaper. “At a higher price band of ₹900, Star Health is demanding a market cap-to-net premium earned multiple of 10.3 times, which is at premium to the peer average. Moreover, the demanded valuations are at elevated premium to recent capital issuance,” said the analyst The private health insurer has a market share of 15.8% in the Indian health insurance market as of financial year 2021. As of September 30, 2021, it has a distribution network of 779 health insurance branches spread across 25 states and 5 union territories in India. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/apps/news/meet-parag-agarwal-the-iit-bombay-grad-who-is-taking-over-from-jack-dorsey-at-twitter/articleshow/87989039.cms">Meet Parag Agarwal, the IIT Bombay grad who is taking over from Jack Dorsey at Twitter</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/star-health-ipo-is-asking-for-five-times-the-price-that-rakesh-jhunjhunwala-paid-in-2018/articleshow/87979818.cms">Star Health IPO is asking for five times the price that Rakesh Jhunjhunwala paid in 2018</a>

Star Health IPO opens today — Check out close date, allotment and other important details

<ul><li>Shares of <keyword id="514317" type="General" weightage="20" keywordseo="anand-rathi-wealth" source="Orion">Anand Rathi Wealth</keyword> listed at ₹602.05 while the shares were allotted at ₹550 per share.</li><li>The IPO received moderate demand from investors as it was subscribed 9.78 times on the last day of the bidding.</li><li>The market capitalisation of the company stood at ₹2,505 crore.</li></ul>Shares of Wealth management firm Anand Rathi Wealth made a tepid listing on the National Stock Exchange (NSE) and BSE at 9.46% premium over the issue price of ₹550 apiece. Post-listing, the market capitalisation of the company stood at ₹2,505 crore, according to BSE data. The listing gains were in line with the ₹50 premium expected in the grey market. The initial public offering (IPO) was open between December 2 and December 6 ⁠and was oversubscribed 9.78 times by investors. The wealth management firm deals with wealthy clients that have net worth of ₹5-50 crore funds Anand Rathi has a dominant position in the distribution of financial products, with a focus on the growing HNI segment. Currently, Anand Rathi Wealth is present across 11 cities in India -- Mumbai, Bengaluru, Delhi, Gurugram, Hyderabad, Kolkata, Chennai, Pune, Chandigarh, Jodhpur and Noida with a representative office in Dubai. Further, the company aims to double its assets under management in the 3-5 years, said Amit Rathi, managing director at Anand Rathi in an <a href="https://www.businessinsider.in/business/corporates/news/anand-rathi-aims-to-double-its-assets-under-management-in-the-next-3-5-years/articleshow/88069928.cms">interview with Business Insider.</a> The company manages assets under management (AUM) of ₹26,058 crore as on March 31, 2021. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/medplus-health-services-is-a-good-play-on-growing-e-commerce-pharmacy-space-say-analysts/articleshow/88265079.cms">MedPlus Health Services is a good play on growing e-commerce pharmacy space, say analysts; GMP at ₹300</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/data-patterns-ipo-opens-today-gmp-at-550-check-out-other-important-details/articleshow/88264929.cms">Data Patterns’ IPO opens today; GMP at ₹550 — Check out other important details</a>

Anand Rathi Wealth makes a modest listing at 9% premium on exchanges

<ul><li><keyword id="6398943" type="General" weightage="20" keywordseo="rakesh-jhunjhunwala" source="Orion">Rakesh Jhunjhunwala</keyword> had bought 7.68 crore shares for about 14% stake in Star Health at an average price of ₹156.28 per share.</li><li>The company has now set a price band of ₹870-900 per share, which is over five times the price at which Jhunjhunwala bought stake three years back.</li><li>The health insurance company is set to open its IPO on November 30 and close on December 2.</li><li>The company is looking to raise ₹7,249 crore through the public listing of shares.</li></ul>Between 2019 to 2020, Rakesh Jhunjhunwala bought 7.68 crore shares in eight transactions for a 14% stake in Star Health and Allied Insurance. He bought shares at an average price of ₹156.28 per share. Now, the company is launching its IPO with a higher price band of ₹900 per share i.e. over five times the price that Jhunjhunwala paid three years ago. The company wants to raise ₹7,249 crore through the IPO. In the same time, the company’s revenue has grown 74%, however, it reported a loss of ₹825 crore in FY21 for the first time in three years. The pandemic had increased the number of claims leading <a href="https://www.financialexpress.com/money/insurance/general-insurance-companies-received-over-rs-5400-crore-covid-claims/2099458/">many insurers to post losses last year</a>. <div type="image" title="star health 2" height="900" width="1200" msid="87979852" hostid="261"></div> Now, is the new price justified? Some believe it is. Others are cautious despite being confident of the long-term potential given that only less than five in a hundred Indians have any kind of insurance, and only one of them has non-life insurance, according to data from India Brand Equity Foundation. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Brokerages </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Recommendation </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nirmal Bang </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Subscribe for long term </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Swastika </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Subscribe for long term </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Choice Broking </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Subscribe with caution </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Angel One </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Subscribe </td></tr></tbody></table> Angel One broking firm likes the price as it says the valuations appear fair considering its positioning. “Star Health stands out among other standalone health insurers in terms of size, strong growth rates and better operational performance which is reflected in pre-Covid numbers for the company. The valuations commanded by Star Health are in-line with recent deals in the segment and appear fair considering its positioning. Hence, we recommend ‘subscribe’ from a long-term perspective only,” said the broking firm. Rajnath Yadav from Choice broking firm thinks the IPO could have been cheaper. “At a higher price band of ₹900, Star Health is demanding a market cap-to-net premium earned multiple of 10.3 times, which is at premium to the peer average. Moreover, the demanded valuations are at elevated premium to recent capital issuance,” said the analyst. As of September 30, 2021, it has a distribution network of 779 health insurance branches spread across 25 states and 5 union territories in India. “Star Health stands to benefit from positive industry growth trends given its leadership position in the attractive retail health segment. It has one of the largest and well-spread distribution networks in the health insurance industry and an integrated ecosystem,” said analysts at Religare broking firm. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/telecom/news/jio-tariff-hike-and-reports-of-bid-for-uk-telco-british-telecom-help-reliance-bounce-back/articleshow/87974095.cms">Jio tariff hike and reports of bid for UK telco British Telecom help Reliance bounce back</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/careers/news/rbi-wants-interns-from-january-and-will-pay-45000-a-month-heres-who-should-apply/articleshow/87979345.cms">RBI wants interns from January and will pay ₹45,000 a month⁠ — here’s who should apply</a>

You Searched For "star healths ipo gmp" and got 7 results

Rakesh Jhunjhunwala-backed Star Health lists at a discount of nearly 6%

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Anand Rathi Wealth makes a modest listing at 9% premium on exchanges

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Star Health IPO is asking for five times the price that Rakesh Jhunjhunwala paid in 2018

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RateGain, Shriram, MapmyIndia and more — Check out the important dates of these upcoming IPOs and their grey market premiums

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