Navigator Health IPO The original public immolation, or IPO, of Star Health and Allied Insurance Company is set to open on Tuesday, November 30. The maiden issue of the Star Health IPO, backed by ace investor Rakesh Jhunjhunwala, will be open for three days. After the bidding process, the Star Health IPO will close on December 2, that is, on Thursday. A day back, Star Health revealed that it had raised a little over Rs crore from anchor investors ahead of opening the issue for the public. Star Health IPO is the last of its kind to be floated among the 10 further offers that anteceded it in the month of November.
Star Health IPO Key Details, Financials The Star Health IPO, open between November 30 and December 2, has a price band of Rs 870-900 for one share, the company blazoned before. navigator Health and Alliance Company, backed by Rakesh Jhujhunwala, Safecorp Investments India and Westbridge, plans to raise Rs crore through its maiden issue. The company has divided the IPO into two corridor. Of this, Rs crore is set to be raised via an offer for trade, wherein equity shares will be vended by being shareholders and promoters. The remaining Rs crore will be a fresh issue.
Those who want to invest in the Star Health IPO can bid for a minimum of 16 equity shares and in multiples of 16 shares later. Retail investors can invest a minimum of Rs for a single lot. The maximum investment for retail investors will be Rs for 13 lots. This is equal to 208 equity shares The company has reserved shares worth Rs 100 crore for its workers for the Star Health IPO. Piecemeal from this, 75 per cent of the shares has been reserved for good institutional buyers, while non institutional buyers have been distributed 15 per cent of the shares. The remaining 10 per cent is reserved for retail buyers.
Star Health IPO Crucial Pitfalls The crucial pitfalls in the Star Health IPO include the company being under inimical government programs and regulations. The health insurance assiduity has suffered a lot from a epidemic, and Star Health was no exception. Thus, there’s a continued threat from the Covid-19 epidemic, while there are no favourable movement in the interest rates for the company. There’s an incapability to manage sanitarium network and distribution channels in case of Star Health, and the company will have difficulties in perfecting and maintaining the profitability competitions.
Star Health IPO GMP Today Taking cue from the crucial pitfalls, the Star Health IPO was costing a decoration of Rs 15 on Tuesday against the upper end of the price band of Rs 900, as per IPO Watch. This was over by Rs 5, from the Star Health IPO slate request decoration on Monday. Still, this was still low and indicated poor performance during the Star Health IPO listing at the stock requests latterly in December.
Star Health IPO Valuation, Should You Subscribe?
. Choice Broking Epidemic despite appreciatively impacting business growth, has impacted the profitability oppressively. In unborn circumstance of new contagion surge or emergence of new variant will be a concern for the profitability. Still, the threat will be lower as compared to situations witnessed during H1 FY22. The peers considered for benchmarking the valuation operate in general insurance request and health insurance is one of their colorful immolations. Therefore these can be considered as deputy peer. At advanced price band ofRs. 900, Star Health is demanding a MCAP-to-net decoration earned multiple of10.3 x, which is at decoration to the peer normal. Also, the demanded valuations is at elevated decoration to recent capital allocation. Therefore considering the below compliances, we assign a “ Subscribe with Caution” standing for the issue ICICI Direct Research Star is a leading player in the health insurance assiduity with a strong distribution network, diversified product suite. At the upper end of price band, the company is valued at5.9 x AUM as on September 30, 2021. We assign UNRATED standing to the IPO.