- Rakesh Jhunjhunwala held 14.98% stake or 82,882,958 shares in the company according to the RHP filed by the country's largest health insurer.
- Rakesh Jhunjhunwala's wife Reba Jhunjhunwala also holds 3.23% stake or 17,870,977 shares in the company.
- At today's closing price of Rs 906.85, Jhunjhunwala's investment in Star Health grows to Rs 7,516 crore.
New Delhi: Rakesh Jhunjhunwala's conviction in India's health insurance sector has finally paid off. The ace investor, who along with his wife Reba have been early investors in Star Health and Allied Insurance Company, which made stock market debut on Friday (December 10), have seen their investment in the health insurance company generating multifold returns.
Rakesh Jhunjhunwala held 14.98% stake or 82,882,958 shares in the company according to the RHP filed by the country's largest health insurer. The company has 31% market share in retail health insurance in India.
According to a report in ETMarkets.com, Jhunjhunwala bought these shares between March 2019 and November 2021 in nine transactions at an average of Rs 155.25 per share. At this price, he had made an investment of Rs 1,287 crore. At today's closing price of Rs 906, Jhunjhunwala's investment in Star Health grows to Rs 7,516 crore. This means the ace investor is sitting on a profit of Rs 6,229 crore.
Shares of Star Health ended in the positive territory on Friday after listing at nearly 6% discount to its issue price of Rs 900 per share.
Star Health raised Rs 6,400 crore from its initial public offering (IPO), which was open for subscription between November 30 and December 2. The company had set a price band of Rs 870-900 for the issue. However, Jhunjhunwala did not offload any stake through the IPO, which was a mix of fresh issue and an offer for sale (OFS).
Rakesh Jhunjhunwala's wife Reba Jhunjhunwala also will hold 3.23% stake or 17,870,977 shares in the company. The billionaire duo together will hold 10.08 crore shares in the company, valuing their investment at Rs 9,137 crore at the closing price of Rs 906.
The Rs 7,249.18-crore IPO of Star Health and Allied Insurance was subscribed 79%. So the company pruned its OFS component to Rs 4,400 crore from Rs 5,249 crore to make the issue sail through. Finally, the company raised Rs 6,400 crore from the IPO.
Expecting bounce back in Rallies India shares; Ravi Singh, Head of Research & Vice President at Share India said, "Rallies India has witnessed bounce back from the lower levels in the last few trading weeks and is currently placed above the 20 EMA. The stock has been one of the outperformer in the chemical sector and has retraced around 10 per cent from its recent low of ₹240 levels. Rallies is expected to outperform its peers from the sector as technically has made a set- up of massive bounce. The stock has being consolidated in the range of ₹250-265 levels and is well-equipped to witness a fresh rebound from the current levels"
On his suggestion to stock market investors in regard to Rallies in India shares; Manoj Damian of Proficient Equities said, This Rakesh stock has mild resistance at ₹274 levels but once it breaks this resistance it may soon go up to ₹295 levels. Aggressive investors are advised to buy Rallies in India shares at current levels, maintaining stop loss at ₹240, whereas defensive buyers can buy the counter above ₹274 for the same target.
You must be logged in to post a comment.