Public problems from Rakesh Jhunjhunwala-Promoted Star Health and allies of the insurance company subscribe to 11 percent on debut on November 30.
It accepts an offer for 51.17 Lakh equity shares against the size of the IPO 4.49 Crore Equity stocks.
The supply size was reduced to 4.49 crore equity shares from 8.14 crores earlier after the company mobilized Rs 3.217.13 Crore from an investor anchor at the top of the ribbon price of Rs 870-900 per share.
Retail investors have bid for 62 percent of the portions they reserve, while the portion is set aside for employees subscribing to 29,328 shares.
Non-institutional investors subscribe to 1.27 lakh shares from the portion they reserve, while qualified institutional buyers buy 41,648 shares of equity from the portions they reserve.
The company intends to collect Rs 7,249.18 Crore through public problems for 30 November-December 2. This offer consists of a new edition of Rs 2,000 Crore and offers for stock sales worth Rs 5,249.18 Crore. The company will utilize net results from fresh problems to increase its capital base and the bankruptcy level.
Bintang Health Insurance is one of the largest private health insurance companies in the country with a market share of 15.8 percent in the Indian health insurance market in FY21, with a total written premium (GWP) of Rs 9,348.95 Crore at FY21.
“On the price ribbon above Rs 900 and the book value of Rs 63.6 for the FY21 ratio, P / B (the price for the book) functions to 14.2x for FY21. We believe that the long-term prospect of the company promises,” said Kr Choksey Research.
Brokers further said retail health insurance will be the main growth driver for the Indian health insurance business in the near future. “The penetration of health insurance in India is among the lowest globally, with only 10 percent of the population that has an insurance policy outside the government scheme,” said the broker.
“Growing awareness of health insurance products, increasing penetration, and most importantly, retail insurance will be the next trigger for future growth of star health insurance,” said Kr Choksey. It is expected that the company is expected to maintain strong growth momentum by increasing its market share and more focusing on the quality of emissions guarantees.
Given the growth outlook for the retail health insurance sector and the company’s position as a market leader in the independent health insurance sector, the company’s assessment is currently looking sense, said the broker. Therefore, they have a ‘subscription’ rating for IPO.
