Star Health Insurance IPO: GMP, price, other details. Should you subscribe?

Market


Star Health Insurance IPO (Initial Public Offering) is going to open for subscription on 30th November 2021 and it will remain open for bidding till 2nd December 2021. The public issue worth 7,249.18 crore will be listed at both NSE and BSE and the tentative date for listing of this Rakesh Jhunjhunwala-backed IPO is 10th December 2021. However, it seems that big name like Rakesh Jhunjhunwal is not working in favour of the company’s share price performance in the grey market. As per the market observers, shares of Star Health Insurance have been nosediving in the grey market ever since it became available for trade.

Here we list out important Star Health Insurance IPO details:

– Star Health Insurance GMP: According to market observers, Star Health Insurance IPO GMP (grey market premium) today is 30, which is 10 lower from its yesterday’s GMP of 40. In last three days, Star Health Insurance IPO grey market premium has come down from 70 to 30 losing more than 50 per cent in this period.

– Star Health Insurance price band: As per the Red Herring Prospectus of the public issue, price band of the IPO has been fixed at 870 to 900 per equity share.

– Star Health Insurance date of subscription: As mentioned above, the IPO will become available for bidding from 30th November 2021 and it will remain available for subscription till 2nd December 2021.

– Star Health Insurance IPO allotment date: The tentative date for share allocation is 7th December 2021.

– Star Health Insurance IPO size: The company aims to raise 7,249.18 crore from this public issue.

– Star Health Insurance IPO lot size: A bidder will be able to apply for the public issue in lots and one lot of the IPO will comprise 16 company shares. A bidder will be able apply for minimum one lot of the IPO whereas the maximum lots allowed to a single bidder is 13.

– Star Health Insurance investment limit: As a bidder is allowed to apply for minimum one lot and maximum 13 lots, the minimum amount required for investing in Star Health Insurance IPO is 14,400 ( 900 x 16) whereas maximum investment is capped at 1,87,200 [( 900 x 16) x 13].

– Star Health Insurance IPO subscribe or not: Speaking on the fundamentals of Star Health Insurance company; Abhay Doshi, Founder at UnlistedArena.com said, “Star Health is the largest standalone health insurance (SAHI) provider in the overall Indian health insurance market. From Fiscal 2019 to Fiscal 2021, their retail health GWP grew at a CAGR of 32.5 per cent, which is exceptional. Also, they have a dominating market share of 31 per cent in retail health segment. The Covid-19 pandemic has been a two-way sword for the health insurance companies as undoubtedly, it has increased awareness amongst people for health insurance which will increase GWP in long run but for short term due to Covid-19, the claims have risen exceptionally high, which led the company to losses. On the financial front, at the upper band of 900 Rs, it is priced at a multiple of 14.15 to its book value and the company has incurred losses in FY21. The issue looks aggressively priced, which may keep the IPO away from the fancy.”

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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