Shares of the country’s largest private health insurer fell as much as 6% at open before reversing course to gain 4.4%
Shares of Star Health and Allied Insurance Co, backed by billionaire stock investor Rakesh Jhunjhunwala, see-sawed in their market debut on December 10 after a muted response to the initial public offering.
Shares of the country’s largest private health insurer fell as much as 6% at open before reversing course to gain 4.4%. They were trading 1.3% lower at Rs. 891.10, as of 10.30 am.
At the day’s high of Rs. 940, the Chennai-based company was valued at Rs. 66.86 billion.
Star Health witnessed a tepid response to its initial public offering last week and had cut its IPO size to Rs. 64 billion from Rs. 72.49 billion.
“Considering the under subscription of the issue, the flatlisting of Star Health was expected. The financial performance was impacted in FY21, but long-term growth prospects of the industry remain quite promising,” said Ajit Mishra, vice-president, research, Religare Broking.
Mr. Jhunjhunwala, who owns a near 15% stake in the insurer, did not put up any shares for sale in the IPO.
Star Health’s IPO failed to get fully subscribed, despite an extended subscription period signalling weak investor demand for India’s third-biggest listing this year.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
