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MUMBAI : Rakesh Jhunjhunwala-backed Star Health and Allied Insurance Co. Ltd has cut its offer for sale (OFS) size to 4,400 crore from 5,249.18 crore after its initial public offering got a weak response.

The fresh issue size has been kept unchanged.

Last week, retail investors placed bids for only 1.08 times the shares reserved for them. Non-institutional investors bid for 0.18 times of their quota while institutional investors subscribed 1.03 times.

The total IPO size will now be Rs6,400 crore instead of Rs7,249 crore.

The health insurer’s IPO will now consist of a fresh issue of Rs2,000 crore and an OFS of up to 48.89 million shares instead of 58.32 million shares planned earlier by its existing promoters and shareholders.

Safecrop Investments India LLP will now sell 29.85 million shares and not 30.68 million shares earlier planned. Apis Growth 6 Ltd will sell 4.34 million shares versus 7.68 million earlier, Mio IV Star will sell 3.83 million shares (cut from 4.11 million shares earlier), University of Notre Dame DU LAC will sell 5.63 million shares (7.44 million earlier), Mio Star will sell 2.49 million shares (4.11 million earlier), and ROC Capital will sell 1.4 million shares (2.51 million earlier).

Mint last week reported that the firm will cut its OFS size after struggling to garner demand for all the shares on offer leading to the company settling for a lower amount for capital raised than it intended.

The company sought a valuation of around Rs50,000 crore at the upper end of Rs900 per share.

The firm will be listing on Friday. According to a dealer, the gray market premium was quoting at a discount of Rs70 from its issue price of 900 a share.

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