star health According to a source, it will cut the offer for the sale portion of its IPO after receiving a weak response to the offering in its subscription period that ends tomorrow.
The IPO of the country’s largest private health insurer was not fully subscribed till the close of bidding on Thursday, indicating that the IPO demand in India may be subdued.
Despite extending the subscription period for its offering, it was subscribed at just 79%, receiving bids of $427.37 million.
“The retail and institutional portion was fully subscribed, but this was not the case for HNIs (high net worth individuals). We saw a weak response from HNIs and therefore decreased by about $100 million. So as a result, sales The size of the proposal will be reduced to the extent of the undersubscribed portion,” said a source.
Star Health did not immediately respond to a Reuters request for comment.
The institutional investors and retail segments were fully subscribed at 1.03x and 1.1x respectively, but the bids for them were much lower than previous offerings such as Nykaa.
“The general response we’re getting right now is that the pricing was a bit high. And that probably should have been something left on the table for investors,” the source said.
Established in 2005, Star Health offers coverage options for retail health, group health, personal accidents and overseas travel insurance.
Ever since Paytm’s disappointing listing, demand for very small IPOs from companies with established business models has remained strong.
Last month, KFC and Pizza Hut restaurant operator Sapphire Foods India made their foray into the market after oversubscribing 6.62 times for an IPO of $276 million.
Data analytics firm LatentView more than doubled its offering in its listing, as investors bid more than 300 times for shares in its $80 million IPO.
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