Rakesh Jhunjhunwala’s Star Health IPO disappointed investors, 6 days from the issue price


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, have been listed below its issue price on the stock exchange on Friday. The company had fixed an issue price of Rs 900 per share, but Star Health’s stock fell 6 per cent to Rs 848.80 and went down to Rs 828. However, within an hour of listing, buying was seen in the stock of Star Health and the stock is trading at Rs 900, recovering from the lower swing.

According to media reports, on the disappointing listing of Star Health, Rakesh Jhunjhunwala has said, Star Health has a 31 percent stake in the health insurance sector. The company has dominance in this sector, which is rarely seen. That’s why I will remain optimistic and I have high hopes from it that’s why I haven’t sold my shares. He said that being the promoter of the company, I will continue to fulfill my responsibility.

Rakesh Jhunjhunwala Connection

Rakesh Jhunjhunwala holds 8.23 ​​crore shares and 14.98 percent stake in Star Health. 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.

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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 was subscribed only 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. Out of the total IPO amount, applications for IPO worth Rs 839 crore have not been received.

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IPO details

The IPO of Star Health and Allied Insurance was available for subscription from November 30 to December 2. The price band of Star Health’s IPO was 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.



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