India’s largest private health insurer star health Its prospectus showed that it has reduced its initial public offering (IPO) size from Rs 72.49 billion to Rs 64 billion ($848.02 million) after a slow response to the IPO 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 was 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 on Friday after Paytm’s dismal start in November, raising doubts over a big IPO and concerns about overvaluation in the domestic equity market.
Indian payments firm MobiKwik postponed its IPO plans after Paytm’s poor performance.
Other big offerings slated for later this year and next year include SoftBank-backed firms Delhivery and Oyo, which have filed draft papers for IPOs worth $992.73 million and $1.12 billion, respectively, and state-owned life insurance giant LIC. is 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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