Star Health slips as anchor lock-in period ends

Star Health and Allied Insurance Company declined 1.68% to Rs 767.30 as the mandatory one-month lock-in of anchor investors expired for the stock today, 7 January 2022.

Anchor investors are marquee institutional investors who are allotted shares in a company ahead of its initial public offer (IPO).

Ahead of the IPO, Star Health and Allied Insurance Company on 29 November 2021, finalized allocation of 3,57,45,901 equity shares to anchor investors at Rs 900 per share, aggregating to Rs 3,217.13 crore.

The initial public offer (IPO) of Star Health and Allied Insurance Company received bids for 3,56,02,544 shares as against 4,49,08,947 shares on offer. The issue was subscribed 79%. The qualified institutional buyers (QIBs) category was subscribed 1.03 times. The retail individual investors category was subscribed 1.10 times. The allotted quota of non-institutional investors and employees remained undersubscribed, at 19% and 10% subscription, respectively.

The issue opened for bidding on 30 November 2021 and it closed 2 December 2021. The price band of the IPO was fixed at Rs 870-900. The scrip was listed at Rs 848.80, representing a discount of 5.69% to the initial public offer (IPO) price. The stock is down 14.74% from its IPO price and 9.6% down from its listing price.

Star Health and Allied Insurance Company is the largest private health insurer in India with a market share of 15.8% in the Indian health insurance market in FY2021 in terms of Gross Written Premium (GWP). The company was the first standalone health insurance company established in India in 2006.

The company is supported by promoters, including Rakesh Jhunjhunwala, Safecrop Investments India LLP, and WestBridge AIF I.

Star Health posted a loss of Rs 380.27 crore on a negative total income of Rs 494.68 crore in the six months ended September 2021.

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