New Delhi, Dec 10 (PTI) Star Health and Allied Insurance Company Ltd recovered the lost ground after a muted debut on the bourses on Friday and settled with a marginal gain over its issue price amid a sluggish broader market sentiment.
The stock, which opened the day on a negative note, managed to pare the losses and ended the session with a marginal gain of 0.11 per cent at Rs 901 apiece on NSE over the issue price of Rs 900.
During the trading session, the stock witnessed an intra-day high of Rs 940 and a low of Rs 827.50 apiece.
In a similar fashion, the stock settled at Rs 906.85 apiece on BSE, registering a gain of 0.76 per cent over its issue price.
“Expensive valuations and dent in profitability due to COVID-19 were key concerns for the investors however the long-term outlook for the company is bullish thanks to the strong brand name and low penetration of health insurance in India,” said Parth Nyati, Founder, Tradingo.
On BSE, the company’s market capitalisation stood at Rs 52,191.23 crore.
Star Health, a leading private health insurer, is owned by a consortium of investors such as Westbridge Capital and Rakesh Jhunjhunwala. It received a subscription of 79 per cent on the last day of the IPO, which closed on December 2.
The insurer’s offer went through as portions set aside for both Qualified Institutional Buyers (QIBs) and retail investors were fully subscribed.
The issue comprised fresh issue of up to Rs 2,000 crore and an offer-for-sale.
The price band was fixed at Rs 870-900 per share.
The equity market was trading in red, with the 30-share Sensex shedding over 171 points to 58,635.67 points while the broader Nifty index declined over 37 points to 17,479.80 points. PTI DRR DRR RUJ RUJ
