India's largest private health insurer Star Health has cut the size of its initial public offering (IPO) to Rs 6,400 crore ($848.02 million) from Rs 7,249 crore earlier after a subdued response to the IPO last week, its prospectus showed.
Star Health's IPO failed to get fully subscribed last week, signalling weak investor demand for India's third-biggest listing this year.
Last week, a source had told Reuters that the company will cut the offer for sale portion after the weak response despite it extending the subscription period.
Backed by billionaire stock investor Rakesh Jhunjhunwala, the company had priced its IPO between Rs 870 rupees and Rs 900 rupees per share and a banking source had told Reuters that the company was aiming for over Rs 50,000 crore ($7 billion) valuation.
The IPO now consists of fresh issue of 22.2 million shares and offer for sale of 48.89 million shares, according to the prospectus dated Dec. 7, while the issue and offer were "subject to finalisation of basis of allotment."
Investors will be closely watching the listing which is likely on Friday after Paytm's dismal debut in November cast doubts on the big ticket IPOs and sparked concerns about overvaluation in the domestic equity market.
Indian payments firm MobiKwik deferred its IPO plans, following Paytm's lacklustre performance.
Other large offerings planned for later this year and the next include Softbank-backed firms Delhivery and OYO, which have filed draft papers for IPOs worth Rs 7,492 crore ($992.73 million) and Rs 8,452 crore ($1.12 billion), respectively, and that of state-owned life insurance giant LIC, expected to be India's biggest.
Incorporated in 2005, Star Health offers coverage options for retail health, group health, personal accidents and overseas travel insurance.
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