Rakesh Jhunjhunwala-backed Star Health lists at a discount of nearly 6%

• The company’s shares started trading at ₹848 at 9:45 a.m.
• Star Health’s market cap was at ₹48,850 crore at the same time.
• The company’s shares were subscribed only 79% in the three-day bidding process.

Ace investor Rakesh Jhunjhunwala-backed Star Health and Allied Insurance listed on the stock exchanges today, December 10, at a discount of 5.69%. The company’s shares started trading at ₹848 at 9:45 a.m.

The company’s market cap was at ₹48,850 crore at the same time.

The price band for Star Health and Allied Insurance’s IPO was set at ₹870-900 per share.

Star Health and Allied Insurance did not receive a great response from investors in the three days of IPO bidding process, between November 30 and December 2. The IPO bidding time is usually from 10 a.m. to 5 p.m.

The issue has only been subscribed 79% till 4:00 p.m. on December 2, so the issue was extended till 7 p.m., for retail and eligible employees. For non-institutional investors the deadline had been extended till 6 p.m.


Star Health’s IPO received bids for 3.5 crore equity shares as against 4.4 crore shares available for subscription.

The poor demand for the health insurer’s IPO coincides with the fact that analysts feel that Star Health and Allied Insurance’s IPO is overvalued. Non-institutional investors and employees of the company have skipped the IPO as well, indicated in the subscription figures.

The IPO consisted of a fresh issue of shares worth ₹2,000 crore and an offer for sale of 5.83 crore shares by existing promoters and shareholders.

The grey market premium (GMP), premium at which investors are comfortable buying the shares before it gets listed on a stock exchange, was at a negative ₹80 on December 10 before the listing.

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