The stock fell as much as 8 per cent below its IPO price of Rs 900, as per the NDTV report. However, the stock, very soon, surged nearly 4 per cent higher to Rs 932 at around 10:15 am, according to a report in Mint.
Stare Health shares fell as much as 8 per cent below its IPO price of Rs 900, but very soon, it surged nearly 4 per cent higher to Rs 932. The company's market cap stood at Rs 48,850.32 crore on the BSE.
The stock fell as much as 8 per cent below its IPO price of Rs 900, as per the NDTV report. However, the stock, very soon, surged nearly 4 per cent higher to Rs 932 at around 10:15 am, according to a report in Mint.
On the BSE, the company's market capitalisation stood at Rs 48,850.32 crore.
The insurer's offer went through as portions set aside for both Qualified Institutional Buyers (QIBs) and retail investors were fully subscribed.
The issue comprised a fresh issue of up to Rs 2,000 crore and an offer-for-sale, and the price band was Rs 870-900 per share.
Check what analysts are saying:
Deven Choksey, a strategist at KRChoksey Investment Managers
The analyst, according to the NDTV report, said he is not too sure how much profit it can make as a pure health insurance company. Premiums are rising given that health insurance is more of a protection product, but at the same time, their claim ratios are also increasing, he added.
Santosh Meena, Head of Research, Swastika Investmart Ltd.
Star Health Insurance IPO got a poor response because of expensive valuations, therefore, we are seeing a poor listing. The long-term outlook for the industry and Star health insurance is promising therefore we can expect buying interest at lower levels but it is difficult to say the exact level.
Those who applied for this IPO should hold it for the long term while those who are looking for a fresh entry should give some time to know at what level it manages to attract demand, reported Mint, quoting Meena.
Investors are turning increasingly skeptical about IPOs as a record year for Indian listings draws to a close. Backed by billionaire Rakesh Jhunjhunwala and his wife Rekha, Star Health raised $848 million rather than the $975 million it sought, inviting scrutiny to its trading debut.
Star Health, a leading private health insurer, is owned by a consortium of investors such as Westbridge Capital and Rakesh Jhunjhunwala. It received a subscription of 79 per cent on the last day of the IPO, which closed on December 2.