The IPO of Star Health and Allied Insurance Company, a health insurance company invested by Rakesh Jhunjhunwala, opened for subscription today, but it has received a cold response from investors. Till 12.30 pm, this IPO was subscribed only eight percent.
Slow start on the first day, only eight percent subscription
According to NSE data, till 12.30 pm, investors had applied for 34,23,552 shares out of 4,49,08,947 shares. Before the IPO, the company had decided to offer 3,57,45,901 equity shares to 62 anchor investors. The price of one share is Rs.900. In this way Rs 3217.13 crore is to be raised from anchor investors. The company will raise capital of Rs 7,249 crore through this IPO. But its share price was seen falling rapidly in the gray market. Last week, its shares were selling at a premium of Rs 90 in the gray market, but this week they fell to a premium of Rs 10.
Star Health IPO: IPO of Rakesh Jhunjhunwala invested cold response in gray market, should you invest?
Price band of Rs 870-900 for the issue
Under the issue, new shares worth Rs 2 thousand crore have been issued. Apart from this, promoters and existing shareholders will sell 5,83,24,225 equity shares through offer for sale (OFS). The price band for the issue has been fixed at Rs 870-900 per share. There is a discount of Rs 80 for the employees of the company. The company has fixed the lot size of 16 equity shares i.e. according to the upper price of the price band, investors will have to invest at least Rs 14400.
75 per cent of the issue has been reserved for Qualified Institutional Buyers (QIBs), 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors. Under the issue, shares worth Rs 100 crore have been reserved for the employees of the company.
The money raised through new shares will be used to increase the capital base of the company. The allotment of its shares can be final on December 7 and the shares can be listed on December 10.
Get Business News ,, latest India News ,, and other breaking news on share market, investment scheme and much more on Business Khabar. Like us on Facebook, Follow us on Twitter for latest financial news and share market updates.
.