Star Health: First major IPO after Paytm's debut to test India's markets

Investors are turning increasingly skeptical about IPOs as a record year for Indian listings draws to a close

Shares of Star Health and Allied Insurance Co. will list in Mumbai Friday, the first test since Paytm’s debut last month to gauge investor enthusiasm for richly valued stocks that offer poor prospects for near-term profitability.

The firm’s initial public offering fell short of target as investors questioned whether the top price of 900 rupees ($12) was justified after Star Health swung to a loss in the year ended March 2021. The pandemic has boosted insurance claims and Amarjeet Maurya, an analyst at Angel One Ltd., said omicron may extend the company’s losses into the year through March 2023. 

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