The shares of Star Health and Allied Insurance Company, an investment company of ‘Big Bull’ Rakesh Jhunjhunwala, earned him Rs 6000 crore on the day of listing. Its listing was weak on Friday, but during day trading, the shares of Star Health reached its top level of Rs 940 at one time. However, at the close of trading, it closed at Rs 901 per share on NSE, which is almost equal to its issue price of Rs 900.
More than 14 percent stake in Rakesh Jhunjhunwala’s company
According to the draft paper from Star Health’s IPO, Rakesh Jhunjhunwala is one of the promoters of the company and he holds more than 14 per cent stake in the company. Accordingly, Rakesh Jhunjhunwala has earned Rs 6,000 crore from this stock when the stock price reaches Rs 940 on Friday. He had invested in Star Health at a price of Rs 156 per share. The offer-price of Star Health’s IPO was Rs 900. Although it was listed much less than this at Rs 848.80. The IPO consisted of a fresh issue of Rs 2,000 crore and an offer-for-sale (OFS) from promoters and shareholders of the remaining Rs 4,400 crore.
Jhunjhunwala’s investment footwear company Metro also opened IPO
Meanwhile, the IPO of Metro Footwear Brands, another Jhunjhunwala-invested company, has opened for subscription on Friday. Investors can bid in the price band of Rs 485-500 per share for this IPO of Rs 1367.5 crore. Under this issue, new equity shares worth Rs 295 crore will be issued. Apart from this, the existing promoters and other shareholders of the company will sell 2.14 crore shares under the Offer for Sale (OFS). After the success of the IPO, the promoters’ stake in the company will be 75.9 per cent and Big Bull Rakesh Jhunjhunwala will hold 13.9 per cent.
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