Stocks

Star Health reduces IPO size to ₹6,400 crore

Our Bureau | | Updated on: Dec 08, 2021
image caption

Promoters and shareholders, offer less; issue priced at ₹900 apiece

Standalone health insurer Star Health and Allied Insurance Co’s has reduced its initial public offering (IPO) size to ₹6,400 crore from its earlier size of ₹7,249 crore as its IPO last week failed to get subscription fully.

Under-subscription

The Chennai-headquartered company’s IPO comprised a fresh issue of equity shares worth ₹2,000 crore and an offer for sale (OFS) of up to 5.83 crore equity shares by promoters and existing shareholders of the company.

It fixed a price band of ₹870-900 per share. But it failed to get full subscription. It received bids only for 79 per cent of the issue, forcing promoters to reduce the issue size.

The IPO opened for subscription November 30 and concluded on December 2.

The offer for sale from selling shareholders and promoters has been reduced from ₹5,250 crore to ₹4,000 crore (to about 4.89 crore shares from the original 5.83 crore shares), according to a document filed with ROC and SEBI.

However, the merchant bankers fixed the IPO price as ₹900 a share, at the upper end of the price band of ₹870-900 a share.

Sellers

Promoter – Safecrop Investments India LLP has reduced its size to 2.98 crore shares from the original proposal of 3.06 crore shares.

Similarly, selling shareholders Apis Growth 6 cut their size to 43.48 lakh shares (earlier 76.80 lakh shares), University of Norte Dame DU LAC 56.29 lakh shares (74.38 lakh shares), MIO IV Star 33.83 lakh shares (41.10 lakh shares), MIO Star 24.87 lakh shares (41.10 lakh shares) and ROC Capital to 14.03 lakh shares (25.09 lakh shares).

Published on December 08, 2021

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