India's Star Health choppy in debut after tepid IPO response (updated)

Star Health and Allied Insurance

10/12/2021 05:24

(Adds analyst comment and details on IPO, valuation)
    BENGALURU, Dec 10 (Reuters) - Shares of India's Star Health
and Allied Insurance Co  STAU.NS , backed by billionaire stock
investor Rakesh Jhunjhunwala, see-sawed in their market debut on
Friday 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 891.10 rupees, as of 0500 GMT.
    At the day's high of 940 rupees, the Chennai-based company
was valued at 66.86 billion rupees ($883.69 million). 
    Star Health witnessed a tepid response to its initial public
offering last week and had cut its IPO size to 64 billion rupees
from 72.49 billion rupees.  urn:newsml:reuters.com:*:nL4N2ST1OF
    "Considering the undersubscription of the issue, the flat
listing 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.
    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.     


     ($1 = 75.6600 Indian rupees)

 (Reporting by Shivani Singh in Bengaluru; Editing by Sherry
Jacob-Phillips)
 ((ShivaniSingh1@thomsonreuters.com; +91 89 6969 2349))