Star Health's IPO scrapes through as investment bankers prune OFS component

The Rs 7,240-cr issue received just 79% subscription before I-bankers stepped in

Star Health and Allied Insurance’s Rs 7,250-crore initial public offering (IPO) — the third largest this year and eighth largest ever — just about managed to sail through despite a poor response from investors, garnering just 79 per cent subscription, forcing the investment bankers to prune offer for sale (OFS) component.

This is the second large offering after digital payments major Paytm this year to receive a lukewarm response from investors, a sign that despite the IPO frenzy investors are discerning when it comes to pricing.

As Star Health didn’t meet the profitability criteria, its IPO required a mandatory 75 per cent