OPEN APP
Home / Markets / Ipo /  Star Health Insurance IPO: What GMP signals on second day of subscription

Star Health Insurance IPO: What GMP signals on second day of subscription

Star Health Insurance IPO GMP today is  ₹15, which means grey market is expecting this IPO to list around  ₹915 ( ₹900 +  ₹15), believe market observers. Photo: Courtesy Star Health Insurance websitePremium
Star Health Insurance IPO GMP today is 15, which means grey market is expecting this IPO to list around 915 ( 900 + 15), believe market observers. Photo: Courtesy Star Health Insurance website

  • Star Health Insurance IPO GMP today is 15, which is 5 higher from its yesterday morning grey market premium of 10, say market observers

Listen to this article

Star Health Insurance IPO: Despite being Rakesh Jhunjhunwala-backed company, the public issue of Star Health Insurance has received tepid response from the investors. After getting 12 per cent subscribed on first day of subscription, the public offer has received mere 2 per cent subscription on second date of subscription i.e. today till 11.29 AM. So, by 11:29 AM today, the public issue has received just 14 per cent subscription of its total offer. This is getting reflected in the grey market too. As per the market observers, shares of Star Health Insurance are available at a premium of 15 in the grey market today.

Star Health Insurance IPO GMP

According to market observers, Star Health Insurance IPO GMP today is 15, which is 5 higher from its yesterday morning grey market premium of 10. Market observers went on to add that Star Health Insurance shares have reappeared in the grey market after disappearing from yesterday evening. They said that such weak performance in the grey market by this Rakesh Jhunjhunwala-backed public issue is because of the tepid response by the investors. They said that in such a IPO crazy market, 12 per cent subscription on first day of subscription, despite having big name like Rakesh Jhunjhunwala was quite disappointing for the investors.

What this GMP mean?

Market observers said that GMP of a public issue is an indication about the expected listing premium from the public issue. As Star Health Insurance IPO GMP today is 15, it means grey market is expecting this IPO to list around 915 ( 900 + 15), which is at par with its price band of 870 to 900 per equity share.

However, stock market experts have completely different opinion in regard to Star Health Insurance IPO.

Advising investors to buy Star Health Insurance IPO for long term; Ravi Singh, Head of Research & Vice President at ShareIndia said, "Due to the Covid pandemic, the awareness in health insurance sector has increased and the retail health market segment is expected to emerge as a key growth driver for the overall health insurance industry in India. Health Insurance sector has a strong positive outlook and since there are only two listed general insurance companies in India, ICICI Lombard and New India Insurance, we expect Star Health is a good option to invest for long term."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Close

Recommended For You

×
Edit Profile
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout