Star Health IPO: Shares of Star Health and Allied Insurance Company (Star Health and Allied Insurance Company), invested by Rakesh Jhunjhunwala, the Big Bull of the stock market, will be listed on the stock exchange on Friday 10 December. It is believed that the IPO of Star Health may get listed below its issue price. Non-receipt of full subscription to the issue and high valuation has spoiled the mood of investors regarding this IPO, which can have an impact on the listing of the stock.
Only 79 percent subscribed to IPO
In fact, even the name tag of Rakesh Jhunjhunwala could not cross the IPO fleet of Star Health and Allied Insurance Company. The IPO of Rs 7249 crore could be subscribed only by 79 per cent. The company was looking to raise Rs 7249 crore through IPO by issuing 4.49 crore equity shares, but applications were received for only 3.56 crore shares. 75 per cent of the IPOs were reserved for qualified institutional buyers (QIBs) and this quota was subscribed only 1.03 times. While the reserve share of retail investors was also subscribed 1.1 times. While the reserve quota for non-institutional investors and company employees was subscribed only 19 and 10 percent. Out of the total IPO amount, applications for IPO worth Rs 839 crore have not been received.
The IPO of Star Health and Allied Insurance opened on 30 November and was available for subscription till 2 December. The price band of Star Health’s IPO has been fixed at Rs 870-900 per share. This is the third biggest IPO of 2021. Earlier, Paytm had brought an issue of Rs 18,300 crore and Zomato Rs 9375 crore.
Rakesh Jhunjhunwala Connection
Big Bull Rakesh Jhunjhunwala holds 8.23 crore shares and 14.98 percent stake in Star Health and Allied Insurance Company. He bought a stake in Star Health at a price of Rs 155.28 per share in nine transactions between March 2019 and November 2021. In the last one year, he has bought 93,24,087 shares at Rs 256.44 per share. In just 32 months, Rakesh Jhunjhunwala’s investment in Star Health has grown 6 times. Not only this, Rakesh Jhunjhunwala’s wife Rekha Jhunjhunwala also has 1.78 crore shares of Star Health, which makes up 3.23 percent. Meaning Big Bull and his wife have a total stake of 17.26 percent.