Star Health IPO listing today: Anil Singhvi expects shares to be listed below issue price – know what other analysts suggest

An ace investor Rakesh Jhunjhunwala-backed Star Health and Allied Insurance Company’s shares are all set to list on exchanges on Friday, December 10, 2021. The majority of the analysts, including Zee Business Managing Editor Anil Singhvi expect a lukewarm market debut for the company’s stock.

The managing director expects the shares of Star Health to be listed below the issue price of Rs 900 per share.

See Zee Business Live TV Streaming Below:

“The listing is expected on a poor note however the long-term outlook for the industry and Star health insurance is promising therefore we can expect buying interest at lower levels, Aayush Agrawal, Sr. Research Analyst - Merchant Banking, Swastika Investmart Ltd said in his listing preview.

According to Agrawal, Star health IPO received poor response due to expensive valuations, dent in profitability due to covid19 and fragile sentiments post a weak listing of Paytm.

Manoj Dalmia Founder and Director-Proficient Equities Limited estimated a discounted listing at 8-10 per cent discount amid the poor response for the initial share sale of the company. Moreover, the grey market price (GMP) of Star Health shares is also negative at Rs 70, Dalmia added.

The market analyst Dalmia recommended investors to sell Star Health shares immediately amid its high valuation, and buying at a fair valuation or lower price is suggested.

The initial public offer (IPO), which was launched between November 30 and December 1, 2021, had witnessed a poor subscription response. The offer was filled a mere 79 per cent than the issue offered.

The issue received bids for 3.56 crore equity shares against 4.49 crore shares on offer, as per the exchange data. The retail portion of Star Health IPO, however, was subscribed 1.09 times.  

According to Reuters report, citing prospectus of the company on Wednesday claimed that India's largest private health insurer Star Health will cut the size of its initial public offering (IPO) to Rs 6,400 crore ($848.02 million) from Rs 7,249 crore earlier after a subdued response to the IPO last week.

The celebrity investor Rakesh Jhunjhunwala has 14.98 per cent stake, while his wife Rekha Jhunjhunwala has 3.23 per cent stake in the company.