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Star Health and Allied Insurance shares list at discount to IPO price, fall over 5% on debut trade

Star Health and Allied Insurance Company shares listed on the stock exchanges today at a discount to IPO price. The stocks began trading at Rs 848 per share, down 5.69% or Rs 51.2 per share from the issue price of Rs 900 per equity share. Minutes into the initial day of trade, the stock trimmed losses and was seen moving higher, inching closer to the issue price. The weak listing was on expected lines after the IPO failed to attract interest from investors during its three-day initial share sale earlier this month. Star Health is backed by ace investor Rakesh Jhunjhunwala who owns a 14.98% stake in the private insurance company. On listing, Star Health and Allied Insurance Company had a market capitalization of Rs 48,850 crore.

“On the listing day, Star Health and Allied Insurance Company stock is down ~2% mainly due to fear of new Covid variant omicron. However, Company has strong growth rates. We are positive on stock and every dip in share prices provides buying opportunities to long term investors,” said Amarjeet Maurya, AVP, Research, Angel One. On the other hand Ravi Singhal, Vice Chairman of GCL Securities said that allottees should book loss at current levels as weak listing was widely expected. “The public issue was offered at around 15 to 20% higher valuations and hence the share price of the newly listed insurance stock may further go down. One should take fresh position in the counter at around Rs 725 to Rs 750 levels for 6 months target of Rs 1000 to Rs 1100 keeping stop loss at Rs 640 levels,” he added.

The Rs 7,249 crore IPO had seen a muted response from investors on Dalal Street, failing to raise the said amount. Qualified Institutional Buyers (QIB) had bid for 1.03 times the IPO size reserved for them while the Retail portion of the issue was subscribed to 1.10 times. However, Non-Institutional Investors (NII) and employees of the firm did not subscribe their portion of the IPO completely.

Analysts had raised red flags around the valuations demanded by the company. “At the higher price band of Rs. 900, Star Health is demanding an MCAP-to-net premium earned multiple of 10.3x, which is at a premium to the peer average. Moreover, the demanded valuations are at an elevated premium to recent capital issuance,” analysts at Choice Broking had said earlier. Star Health is one of the largest private health insurers in India with a market share of 15.8% in the fiscal year 2021. The company primarily focuses on the retail health market segment. It offers a range of flexible and comprehensive coverage options for retail health, group health, personal accident, and overseas travel.

The company saw its profitability getting hit during the covid-19 pandemic impacted by higher claims. Start Health and Allied Insurance reported an operating loss of Rs 1,071 crore in financial year 2020-21 as compared to a profit of Rs 360.8 crore and Rs 164.7 crore in fiscal year 2019-20 and 2018-19.

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MapMyIndia IPO to open on Dec 9; price band set at Rs 1,000-1,033/ share

Digital mapping company MapMyIndia, which powers Apple maps, has fixed a price band of Rs 1,000-1,033 a share for its Rs 1,040-crore initial share-sale, which will open on December 9. The three-day initial public offering (IPO) will conclude on December 13. The bidding for anchor investors will open on December 8, the company announced. The IPO is entirely an offer for sale of up to 10,063,945 equity shares by existing shareholders and promoter.

The OFS comprises sale of up to 42.51 lakh equity shares by Rashmi Verma, up to 27.01 lakh equity shares by Qualcomm Asia Pacific Pte Ltd and up to 13.7 lakh equity shares by Zenrin Co Ltd. In addition, the remaining 17.41 lakh equity shares will be offloaded by several other selling shareholders.

At present, promoters Rakesh Kumar Verma and Rashmi Varma hold 28.65 per cent and 35.88 per cent stake in the company.
The public issue is expected to fetch Rs 1,039.6 crore at the upper end of the price band. MapMyIndia, also known as CE Info Systems, is backed by global wireless technologies company Qualcomm and Japanese digital mapping Zenrin. The New Delhi-based company is leading provider of advanced digital maps, geospatial software and location-based IoT technologies.

It provides products, platforms, application programming interfaces (APIs) and solutions across a range of digital map data, software and IoT under the MapmyIndia and Mappls brands. The company’s customers include PhonePe, Flipkart, Yulu, HDFC Bank, Airtel, Hyundai, MG Motor, Avis, Safexpress and Goods and Service Tax Network (GSTN).

Apple products use MapmyIndia maps as do payment gateways like PayTm, PhonePe, or e-commerce food delivery platforms like McDonalds, Grofers, Cars24. Store locators by companies like SBI Branch Locator, Bajaj Finserv, Prasar Bharti DTH Dealer locator use the same. Half of the issue size has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and 35 per cent for the retail investors.

Investors can bid for a minimum of 14 equity shares and in multiples thereof. Axis Capital, JM Financial, Kotak Mahindra Capital and DAM Capital Advisors are the lead managers to the issue.

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Singapore crypto exchange Coinstore enters India amid govt seeking to ban private cryptocurrencies

Even as the government seeks to ban all private cryptocurrencies through the new crypto bill, which is likely to be introduced in the Winter Session that began Monday, Singapore-based crypto futures and spot trading exchange Coinstore has forayed into the Indian market. The company on Monday announced its entry into the Indian crypto market with the launch of its web and app platform for Indian users. Users can “trade, buy and sell cryptocurrencies, with easy KYC verification and 24/7 customer support,” Coinstore said in a statement. The exchange enables trading into over 50 cryptocurrencies. The launch assumes significance as more than 20 per cent of Coinstore’s active users come from India.

“With over 20 per cent of our active users from India, we decided to start local operations to fully support our Indian users,” said Jennifer Lu, Head Product and Co-Founder, Coinstore. The setting up of a local support office is currently underway in the country. The company will have offices in Delhi, Mumbai, and Bengaluru “that will act as its base in India for future expansion.”

Coinstore is also looking to hire local talent with 100 immediate openings in India for its customer support, marketing and operations division. The company added that its $120-million fund, which is allocated for India expansion, will be deployed towards marketing, hiring, and development of crypto-related products and services for the Indian market.

Users will be provided with a copy trading feature to follow trades of other successful traders in order to make strategic investment decisions from trading the future prices of cryptocurrencies. In June this year, Coinstore had launched its iOS and Android apps globally alongside their web trading platform. The company said it would soon undergo a “rigorous audit by Hacken, a global cybersecurity firm with a focus on blockchain security.”

Coinstore’s foray follows the entry of Malaysia-headquartered crypto exchange CGCX.io back in April this year, as per a company release, followed by the US-based crypto trading platform CrossTower that entered India in September this year. According to a Nasscom report published in September this year, cryptotech has the potential to create more than 8 lakh jobs by 2030 in India, up from 50,000 individuals employed currently. Moreover, the industry is expected to reach $241 million in size by 2030 in India from $6.6 billion invested by Indian retail investors in different crypto assets such as Bitcoin, Ethereum, Polygon, etc., the report noted. The crypto industry has grown by 39 per cent in the last five years in India.

Importantly, the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 listed for introduction in the current Winter Session seek to create a framework for the creation of the official digital currency to be issued by the Reserve Bank of India. While it also intends to prohibit all private cryptocurrencies in India, however, it will allow for ‘certain exceptions’ to promote the underlying technology of cryptocurrency and its uses, the government had said in the legislative agenda released last week.

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Bank of Baroda raises Rs 1,997 cr via Basel III-compliant bonds

State-owned Bank of Baroda on Friday said it has raised Rs 1,997 crore by issuing Basel III-compliant bonds. The bank had come out with a Rs 2,000 crore issue of additional tier-I bonds on November 24.

“The bank has received total bid amount of Rs 5,308 crore, out of which the issuance was finalised for Rs 1,997 crore at 7.95 per cent (per annum),” BoB said in a regulatory filing.

The bank said it issued a total of 1,997 bonds of Rs 1 crore each under this issue to a total of 21 allottees. To comply with Basel-III Capital Regulations, banks need to improve and strengthen their capital planning processes.

These norms are being implemented to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks. Stock of Bank of Baroda traded 3.33 per cent lower at Rs 89.90 apiece on BSE.

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