InvestorQ : Will the shortfall in the Star Health IPO impact the appetite for big ticket IPOs in India?
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Will the shortfall in the Star Health IPO impact the appetite for big ticket IPOs in India?

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Deepa Salunkhe answered.
5 months ago
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In my view there will be 2 key implications that the Rs.839 crore reduction in the IPO size of Star Health will have.

a) IPOs may have to be a little more cautious about optimistic valuations. Star Health was seeking Rs.51,000 crore valuation for a pure health insurance player. That hardly left anything on the table for investors which did not enthuse a lot of investors. To some extent, the Paytm issue had also raised a cloud over big-ticket issues.

b) It also raises questions about the appetite for big ticket IPOs in India. Zomato and Nykaa may have been successes, but they had a first mover advantage and were sold based on simple models. In comparison, Star Health and Paytm are more complex models. Of course, it also raises questions about IPO appetite, especially when they are bunched.

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