Choice Equity Broking IPO report on Star Health and Allied Insurance Company
Backed by Rakesh Jhunjhunwala and India’s first pure-play health insurance company, Star Health and Allied Insurance Company Ltd. (Star Health), is coming up with an IPO to raise Rs. 7,250cr, which opens on 30th Nov. and closes on 2nd Dec. 2021. The price band is Rs. 870 - 900 per share. The issue is a combination of fresh and OFS. The company will not receive any proceeds from the OFS part of the issue. Net proceeds from the fresh issue will be used to augment the capital base, thereby maintaining the solvency levels of the company. In the last 6-12 months, the company has issued shares to the investors at significant discount to the issue price.
Valuation and Outlook
Moreover, the demanded valuations is at elevated premium to recent capital issuance. Thus considering the above observations, we assign a “Subscribe with Caution” rating for the issue.
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