Star Health Insurance IPO subscribed only 79% on last day; issue extended till 7 p.m.

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Star Health Insurance IPO subscribed only 79% on last day; issue extended till 7 p.m.
BCCL
  • Star Health and Allied Insurance IPO has not been fully subscribed till the last day of the IPO and hence the issue has been extended till 7 p.m.
  • The IPO has been subscribed 79% as of 4 p.m., on December 2
  • The health insurer is looking to raise ₹7,249 crore through the public issue of shares.
  • The grey market premium of the company’s shares stood at ₹15 over the upper price band of ₹900.
Rakesh Jhunjhunwala-backed Star Health and Allied Insurance initial public offering (IPO) has received a not-so-good response from investors in the three days of IPO bidding process. The issue has only been subscribed 79% as of 4 p.m., on December 2.

Following this, the issue has been extended till 7 p.m., on December 2, for retail and eligible employees. For non-institutional investors the deadline has been extended till 6 p.m.

Note that the IPO bidding time is usually from 10 a.m. to 5 p.m.

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The poor demand for the health insurer’s IPO is because analysts feel that the IPO is overvalued. Non-institutional investors and employees of the company have given a huge miss to the IPO as seen in the subscription figures.
Investors Subscription status
Qualified institutional investors1.03 times
Non-institutional investors0.18 times
Retail1.08 times
Employees0.08 times
Overall0.79 times

Most mutual funds also avoided the IPO in the anchor allotment round as reportedly the valuations seemed too expensive.

The IPO received bids for 3.5 crore equity shares as against 4.4 crore shares available for subscription.

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In line with the weak subscription status, shares of the company are demanding a premium of just ₹15 in the grey market.

The IPO consists 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.
Star Health Insurance IPO subscribed only 79% on last day; issue extended till 7 p.m.
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