Bengaluru: India’s largest private health insurer star health The company has reduced its initial public offering (IPO) size to Rs 6,400 crore ($848.02 million) from the earlier Rs 7,249 crore. IPO Its prospectus was shown last week.
Star Health’s IPO last week failed to fully subscribe, reflecting weak investor demand for India’s third-largest listing this year.
Last week, a source told Reuters that the company would cut the offer for sale after a weak response despite extending the subscription period.
Backed by Billionaire Stock Investor Rakesh Jhunjhunwala, the company had priced its IPO between Rs 870 and Rs 900 per share and a banking source told Reuters that the company is targeting a valuation of around $7 billion.
As of December 7 prospectus, the IPO now consists of a fresh issue of 22.2 million shares and an offer for sale of 48.89 million shares, while the issue and offer were “subject to finalization of the basis of allocation”.
Investors will be closely watching the listing which is likely to happen after Friday PaytmA disappointing start in November raised doubts over large IPOs and concerns about overvaluation in the domestic equity market.
Indian Payment Firm MobiKwik After the poor performance of Paytm, the IPO plan was postponed.
Other big offerings planned for later this year and next year include SoftBank-backed firms Delhivery and ayo, who have filed draft papers for IPOs worth $992.73 million and $1.12 billion respectively, and state-owned life insurance company LIC are expected to be India’s largest.
Established in 2005, Star Health offers coverage options for retail health, group health, personal accidents and overseas travel insurance.
Star Health’s IPO last week failed to fully subscribe, reflecting weak investor demand for India’s third-largest listing this year.
Last week, a source told Reuters that the company would cut the offer for sale after a weak response despite extending the subscription period.
Backed by Billionaire Stock Investor Rakesh Jhunjhunwala, the company had priced its IPO between Rs 870 and Rs 900 per share and a banking source told Reuters that the company is targeting a valuation of around $7 billion.
As of December 7 prospectus, the IPO now consists of a fresh issue of 22.2 million shares and an offer for sale of 48.89 million shares, while the issue and offer were “subject to finalization of the basis of allocation”.
Investors will be closely watching the listing which is likely to happen after Friday PaytmA disappointing start in November raised doubts over large IPOs and concerns about overvaluation in the domestic equity market.
Indian Payment Firm MobiKwik After the poor performance of Paytm, the IPO plan was postponed.
Other big offerings planned for later this year and next year include SoftBank-backed firms Delhivery and ayo, who have filed draft papers for IPOs worth $992.73 million and $1.12 billion respectively, and state-owned life insurance company LIC are expected to be India’s largest.
Established in 2005, Star Health offers coverage options for retail health, group health, personal accidents and overseas travel insurance.
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