Some investors questioned the announcement issue price as Star Health swung a slump in ended March 2021.
Shares of Star Health and Allied Insurance Co. traded to Mumbai in their first big list since the launch of Paytm last month. Indeed, investors measured interest in high-value stocks with negative expectations for short-term returns.
The stock fell 8% from its IPO price of Rs 900, but quickly fell back to Rs 905 at 10:10 am in Mumbai. Some investors questioned the announcement of the award as Star Health suffered a slump in late March 2021.
“As a pure health insurance company, I don’t know how much money you can make,” said Deven Choksey, an expert at KRChoksey Investment Managers. Health care costs are increasing because health insurance is more of a protection product, but at the same time the cost of demand is also increasing, ”he said. Investors have grown increasingly skeptical of IPOs as India’s annual record for registrations draws closer.
Returning from billionaire Rakesh Jhunjhunwala and his wife Rekha, Star Health raised $ 848 million instead of the $ 975 million it was craving, calling for a review of its early days in business. Merchants also note that the consolidation of One 97 Communications Ltd., the digital payment service operator Paytm, is down 25% since Nov. 18, from a 2.1% custom loss.
Tuesday, Medplus Health Services Ltd. Ahead of launch next week, it reduced the size of its IPO to $ 186 million by raising $ 219 million.
Overall, Indian IPOs that have raised at least $ 500 million this year rose an average of 17% on the first day of trading, according to data compiled by Bloomberg. Half of the 10 increased on day one, including automatic delivery from Zomato Ltd. and beauty retailer FSN E-Commerce Ventures Ltd.
Kotak Mahindra Capital Co., Axis Capital Ltd., BofA Securities India Ltd., Citigroup Global Trading India Pvt. ICICI Securities Ltd. is President of Star Health’s IPO.
The outbreak has increased insurance claims, and Amarjeet Maurya, analyst at Angel One Ltd., said the omicron could extend the company’s decline until March 2023.