Health Insurance share listing may ‘disappoint’ allottees, say experts:

Expecting Star Health share listing at a discount of around 5 to 10 percent, stock market experts said that Star Health share price today may debut at around *810 to *850 per share levels

Shares of Star Health Insurance are going to list on NSE and BSE today. According to stock market experts, due to higher pricing, the public issue got a tepid response and Star health’s share price debut on Dalal Street may disappoint the lucky allottees. Expecting Star Health share listing at a discount of around 5 to 10 percent, market experts went on to add that Star Health’s share price today may debut at around 810 to 850 per equity share at Dalal Street.

 Expecting Star Health to share listing a disappointing event for lucky bidders; Abhay Doshi, Founder at UnlistedArena.com said, “As the DStreet is witnessing rain of IPOs, a mixed and selective subscription to different issues. Star Health Insurance received a very tepid response at a time when other IPOs are getting highly oversubscribed. The tepid response was mostly on account of higher pricing which made investors wary and may make its debut a lackluster one. The shares may list at 510 percent discount, disappointing the allottees.”

Based on Abhay Doshi’s view; Abhay Agarwal, founder of Piper Serica, a PMS registered with SEBI, said: At lower values, purchases are made by anchor investors who want to reduce acquisition costs. The IPO applicant has received an almost complete subscription.  Manoj Dalmia, Founder, and Director of Proficient Equities Limited said: After the Covid-19 pandemic, insurance suffered huge losses and Star Health acquired shares through an allotment process.

 Aayush Agrawal, Senior Research Analyst Merchant Banking, Swastika Investment Ltd.  “Star Health Insurance, the largest private health insurance company, lacked feedback due to high ratings, poor profitability from Covid19, and vulnerable sentiment due to the weakness of Paytm’s list. Not much is expected in the long run. The outlook for the industry and star health insurance is promising, and we can expect a decline in buying motivation. “

Aprajita Saxena, Research Analyst at Trustline Securities, said: It has deteriorated financially. An indicator indicated by losses in the first half of FY21 and  FY22. In terms of valuation, Star Health appears to be overrated compared to its listed competitors. Due to the weak sentiment, there is no listing profit and the listing will be at the issue price of 900 rupees on the exchange. .. The market price of healthy stocks is expected to be about 840  (900-60 ), which is in line with expectations from stock market experts.

Disclaimer: The above views and recommendations are those of individual analysts or brokerage firms, not our blog.