Star Health and Allied Insurance Co. Ltd gave a cold shoulder to its initial public offering (IPO), which closed on Thursday with the company raising less than what it intended to, according to data filed with the stock exchanges.
The Rakesh Jhunjunwala-backed company raised about ₹6,410.18 crore from investors against its target of ₹7,249.18 crore, receiving just 79% overall subscription for its IPO.
Though the share sale was able to close successfully even with the poor response, Star Health was the first company in 2021’s stellar IPO market that failed to raise the target amount.
Surprisingly, the employee quota in the IPO was subscribed only 10%, the lowest subscription for this category among 50-odd deals that have hit the markets