Private Equity Fund Investments
Star Health's Rs.7,250-Cr IPO manages to scrape through; subscribed 79% on final day
The INR 7,250-crore initial public offering (IPO) of Chennai-based Star Health and Allied Insurance Company got a tepid response from investors with the issue getting bids for only 79% of the shares on sale on Thursday, the final day of the process. However, the IPO - the third largest in 2021 - managed to scrape through after the institutional portion was fully subscribed. The rules of the Securities and Exchange Board of India (Sebi) allow undersubscribed IPOs to go through if 75% of the issue is reserved for institutions and the category is fully subscribed. The non-anchor portion of the issue received bids for 3.56 crore shares against 4.49 crore on offer. The retail quota was subscribed 1.1 times while the portion reserved for qualified institutional buyers was subscribed 1.03 times. High net worth investors (HNIs) mostly gave the issue a miss with the shares set aside for this category getting only 19% subscription. The public offer included shares worth INR 100 crore for employees, but only 10% of this portion was subscribed. This is the first time in two years that a mainboard IPO has gone under-subscribed.
From the Venture Intelligence PE-VC Deal Database: PE investors in Star Health include GIC, ROC Partners, WestBridge Capital, Rare Enterprises and Madison India. (Subscribers to the database can login to view the valuation, deal structuring and other transaction details.)
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