Star Health shares trade negative as anchor investors 30-day lock-in period ends, stock down 15% from issue price

As the anchor investors' 30-day lock-in period ends on Friday, January 7, 2022, the shares of Rakesh Jhunjhunwala-backed Star Health and Allied Insurance slumped over 2 per cent to Rs 764.1 per share on the BSE intraday trade. 

On November 29, 2021, at least 62 anchor investors had picked up stakes worth Rs 3217 crore in the insurance company ahead of its three-day initial public offer launched between November 30 and December 2, 2021. The issue had received a mute response and was filled merely 80 per cent in 3-day. 

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A total of 3.57 crore shares were subscribed by the anchor investors at Rs 900 per share, which is 6.2 per cent of the total outstanding shares.  

Baillie Gifford Pacific Fund, WF Asian Smaller Companies Fund and The New Economy Fund are the top three most subscribed anchor investors with 7.77, 7.64 and 6.95 per cent respectively of the overall anchor book part.  

The other investors that have been in the anchor book part are: Monetary Authority of Singapore (6.89 per cent), WCM Focused Emerging Markets (4.27 per cent), Abu Dhabi Investment Authority (4.2 per cent), Valiant Mauritius (3.24 per cent) Goldman Sachs (Singapore) (3.07 per cent), Morgan Stanley Funds (2.43 per cent) among others. 

The shares of the insurance company had made a tepid start on the stock market at 6 per cent discount to Rs 848.8 per share on the BSE, and Rs 845 per share on the NSE on December 10, 2021. The stock is down over 15 per cent from its issue price and almost 10 per cent from the listing price on the BSE. 

The market analyst and TradeSwift Director Sandeep Jain had said that the companies that made a bumper listing, may see profit booking by anchor investors, however, the profit booking is directly dependent on multiple factors such as market sentiment, budget run-up and third quarter earnings.