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I have full confidence in Star Health management: Rakesh Jhunjhunwala
Ace investor Rakesh Jhunjhunwala-promoted Star Health and Allied Insurance Company had a disappointing debut on the bourses as the stock listed with a nearly 6 percent discount on December 10. The shares of the company, which were sold at a price of Rs 900 apiece in the initial public offering (IPO), opened at Rs 848.80 on the BSE, reflecting a fall of 5.69 per cent. The issue comprised fresh issue of up to Rs 2,000 crore and an offer-for-sale, and the price band was Rs 870-900 per share.
While the debut was disappointing, the Bug Bull remains optimistic about the insurer. "Health insurance in India is about 15% of the amount spent on healthcare in India or even lesser, I think, while in the advanced countries, over 80% is paid by insurance companies. So, it is a very nascent industry in India," Jhunjhunwala said.
"Star Health dominates the sector with about 31% market share in all retail health insurance in India. I think this kind of dominance in an industry which is poised to grow is very rare. So, I will remain optimistic and hopeful and that is why I haven’t sold any shares in the issue," he added.
Parth Nyati, Founder, Tradingo
Star Health Insurance is debuting the secondary market on a weaker note as expected on the back of a very poor response from the investors.
Expensive valuations and dent in profitability due to Covid19 were key concerns for the investors however the long-term outlook for the company is bullish thanks to the strong brand name and low penetration of health insurance in India.
Investors who applied for this IPO for listing gain can exit while long-term investors should keep patience and hold this stock. New investors can wait for some time before taking entry because we have to understand that at what level, the market will be comfortable.
Shriram Properties IPO subscribed 1.69 times on final day
The maiden public offer of Shriram Properties, the south-based real estate developer, has received bids for 4.97 crore equity shares against the IPO size of 2.93 crore equity shares, subscribed 1.69 times on the final day.
The issue continued to get healthy response from retail investors, whose reserved portion was subscribed 8.71 times, while the part set aside for employees was booked 87 percent.
Non-institutional investors have put in bids for 19 percent shares of their reserved portion, and qualified institutional buyers (QIBs) have bid for 12 percent.
Santosh Meena, Head of Research, Swastika Investmart:
Star Health Insurance IPO which is one of the big brands backed by big-name got a very poor response from all categories of investors especially QIB because they didn't show any interest because of expensive valuations, therefore, we are seeing a poor listing.
The long-term outlook for the industry and Star health insurance is promising therefore we can expect buying interest at lower levels but it is difficult to say the exact level.
Those who applied for this IPO should hold it for the long term while those who are looking for a fresh entry should give some time to know at what level it manages to attract demand.
MapmyIndia IPO subscribed 2.11 times on day 2, NII portion booked 1.25 times
The public offer of CE Info Systems, popularly known for its brand MapmyIndia, continues to see strong demand from investors as it has been subscribed 2.11 times, so far, getting bids for 1.48 crore equity shares against the IPO size of 70.44 lakh equity shares on December 10, the second day of bidding.
Retail investors remained at the forefront to support the issue, putting in bids 3.43 times the portion set aside for them, and that of non-institutional investors saw 1.25 times subscription.
Qualified institutional investors bought 46 percent shares of their reserved portion. Half of the offer size is reserved for qualified institutional buyers, 35 percent for retail investors, and the remaining 15 percent for non-institutional investors.
BSE Information Technology index slipped 0.5 percent dragged by the Hinduja Global Solutions, Aurum Proptech, Larsen & Toubro Infotech
Bajaj Electricals share price jumps 10%
Bajaj Electricals share price jumped 10 percent to Rs 1,159.95 intraday on December 10 after the company announced that it is going to review corporate structure.
The Board of Directors of the Company, at its meeting held on December 9, 2021, has authorised some of the directors and officials of the Company to review the corporate structure of the Company to unlock growth and value creation for all business segments, Bajaj Electricals said in a regulatory filing.
The company is currently engaged in Consumer Product segment (CP) and Engineering Procurement and Construction segment (EPC).
Rupee Opens:
Indian rupee opened 13 paise lower at 75.65 per dollar on Friday against Thursday's close of 75.52.
US dollar increased by 0.35% yesterday amid risk aversion in the global markets and upbeat job data. US unemployment claims fell to the lowest since 1969 to 184,000. Markets sentiments were hurt on concerns that restrictions in some parts of the world to curb spread of Omicron variant may hurt global economic recovery, said ICICI Direct.
Rupee future maturing on December 29 depreciated by 0.10% on persistent FII outflows and firm dollar. Further, investors await clarity on Omicron threat to economy, it added.
Market at 10
Benchmark indices were trading near the day's low amid volatility with Nifty below 17500.
The Sensex was down 221.10 points or 0.38% at 58586.03, and the Nifty was down 55.50 points or 0.32% at 17461.30. About 1861 shares have advanced, 899 shares declined, and 86 shares are unchanged.
Star Health sees tepid debut, stock lists at a 6% discount
Ace investor Rakesh Jhunjhunwala-promoted Star Health and Allied Insurance Company had a disappointing debut on the bourses as the stock listed with a 6 percent discount on December 10. It was on expected lines, given the muted response to its IPO and overvaluation concerns.
The stock opened at Rs 848 on the BSE, down from its issue price of Rs 900, while the opening price on the National Stock Exchange was Rs 845.
The initial public offering of Star Health was subscribed 79 percent during November 30-December 2, despite a ‘subscribe’ rating from analysts and its association with Jhunjhunwala.
Zydus gets USFDA nod for next phase of trial of Saroglitazar
Zydus has received permission from the USFDA to initiate the Phase 2(b)/3 Prospective, Multi-centre, Randomized, Double-blind, Placebo-controlled adaptive clinical trial to evaluate efficacy and safety of Saroglitazar Magnesium in subjects with Primary Biliary Cholangitis (PBC).
Cadila Healthcare was quoting at Rs 467.65, up Rs 5.00, or 1.08 percent.
Market LIVE Updates: Indices trade lower, Nifty below 17,500; Star Health debuts at a discount - Moneycontrol.com
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