NEW DELHI: After a dull show by Paytm on the stock exchanges, it seems investors are shying away from big-ticket IPOs.
Star Health and Allied Insurance’s Rs 7,249 crore initial public offering (IPO) sparingly managed to sail through even as it missed to be subscribed 100%.
According to market sources, the IPO will now cut its offer for sale (sale of shares by existing investors) size.
Star Health IPO has sailed through even as only 79% subscription is done (the requirement is 75%).
As per rule for such issues where QIB portion is 75% and retail is 10% and in this case, both these categories are fully subscribed.
The IPO extended timing for individual investors till 7pm after receiving bids for only 80% of shares on offer at 5 pm, excluding the anchor allotment.
The qualified institutional buyers (QIBs) part was subscribed 1.03 times, while those of non-institutional investors was subscribed only 0.19 times.
Retail individual investors was subscribed 1.10 times but shares for the employees’ segment was subscribed 0.10 times.
Billionaire investor Rakesh Jhunjhunwala backed Star Health’s IPO is the first IPO that has missed to attract 100% subscription of the original issue size in recent years.
In 2018, the IPO of ICICI Securities and in 2019, the IPO of Shapoorji Pallonji group company Sterling & Wilson Solar had met a similar fate.
Star’s IPO which kicked off on Tuesday was subscribed 12% at the end of day one and 20% on day two.