What is the value of 1? The value of 1 is also very high. You do not have to invest even 1 in this IPO. So I have answered you that you have to avoid this IPO. You do not have to apply for it. So all the people who came to read this blog that whether they want to apply or not, then you have got your answer. Youkan go if you want. But now those people can definitely read this blog who want to know why I said this. I am saying that you do not have to invest ₹1 in Star Health IPO.
There are a lot of people on the internet and many people will definitely tell you that you should invest money. But what is my calculation that is saying that do not invest even 1 in this. You will say, sir, you are talking about Star Health. Rakesh Jhunjhunwala, who is the Big Bull of India, Warren Buffet is also from India, he is the promoter of this company. So we should not invest money in their company. Then in which company should we invest money?
You have a lot of money. If you want, you can invest money anywhere, but I will definitely tell you with my analysis and then you can choose whether you want to invest money or not. No doubt if we talk about Star Health, this is the number-one player in the health insurance segment. They are doing a great job. There is no doubt about it, but still am refusing to invest in IPO. So I will definitely tell you why I am saying this.
Now when we talk about Star Health, there are a lot of insurance. There is health insurance, motor insurance, life insurance. In the health insurance sector, their market share is 15.8%, which is a good market share. This share is not small because if we talk about this player, they are generating revenue of thousands of crores. I will just tell you how much revenue they are generating. In 15.8%, insurance is coming from the retail category, 89.3% and group insurance is coming from 10.7%.
If we talk about their hospital network, then 11,778almost means you can consider their hospital network around 12,000and if we talk about their health insurance branches, then 779 is their health insurance branch. The network of the company is very good. I am not saying bad about the company. I said don’t invest money in their IPO. If we look at the company’s financials first and I am definitely going to tell you why I am saying don’t invest money in IPO. If you consider the company’s financials, as I told you in the first blog, if you want to invest money in IPO, then we have to look at the financial performance of the company for at least 3 years. So let’s do an analysis of 2019, 20 and 21.
See, the revenue is increasing every year, which is a good thing that 4 to75, 5454 and 7405 crores mean you see from 4200 crores, revenue has reached almost 7500crores from 19 to 21. So the company is growing, there is no doubt about it. If we talk about the profit, then in 2019, their profit was 128 crores, after that it doubled. Here you can see more than double, it became 268 crores, but in 2021, what you are seeing is 826. I deliberately wrote 826, it is minus 826. Means the profit here, you might be feeling it has increased, but it has not increased. It has gone down. Why has it gone down? You all know that Coved is a very big thing. People have also done health insurance by doing health insurance.
So the revenue has increased here because people have done health insurance. But when we talk about the claim, people have put so much claim that the company could not move back from booking losses. The company has booked losses even before bringing IPO. Then we talk about assets, you will also see the company’s assets. You are seeing growth. Here there were assets of 16,000 crores, almost 16,000again and then assets above 31,000 crores. So the company has good assets.
Again Isai I am not doing bad forth company. What you are seeing is that they have booked losses. So this is due to Covid. Overall the company is growing well as per the financials. The company is growing, but now they cannot take out their PE. If we talk in negative, if you see, the profit goes, then PE also goes in negative. But now you have to understand one thing the financial son which they are asking you for money, the valuation on which they are asking you for money, according to me, that valuation is very high.
I will tell you about it. So step by step we will move forward. Why am I talking about valuation? You see here, the IPO dates starting from 30th November and will remain till 2nd December. Here the book building IPO is from 870 to 900.
Now if I take the cut-off price of 900rupees and if you take the valuation, then you will see a valuation of almost 52,000crores. But in their last blog, I told you that if you are investing in IPO, then you have to do peer comparison also. Now you can do their peer comparison. Let’s talk about ICICI Lombard. Let’s talk about New India Assurance.
So if you compare it with these two, then their valuation is high here. Now if we talk about New India Assurance, then the company’s valuation is of 25,000 crores. Here 52,000 crores, so their valuation is too much. According to this valuation, if they are asking for money, then again it is too much. Now people are saying, I will give the answer to this also, that Rakesh Jhunjhunwala has invested, shoe did not invest today, the day you will invest. When he invested, then the money that is being asked from you today, he invested at one fourth of its price.
So at that time if you had invested, then I would have advised you to invest. But investing today will be way for you to buy an overpriced thing. It is your choice, you have a lot of money, so invest wherever you want, but my opinion is that you should not invest in it. You will say one more thing that whenever you do analysis on IPO, then you tell us to see two things. The first is the subscription status. How much is the subscription rate going on? The blog you will watch today, the day you will watch the blog, then it will be the first day of the month. So you must be watching this blog on 13th November.
So today is 29th November, the day I am writing this blog. So I myself do not know about the subscription status, but I am telling you according to my analysis that the subscription will not go very much in this. This is the first thing. The second thing is the day I am making this blog, we talk about the greenmarket premium. You should study the grey market premium first. If the grey market premiums increasing a lot, then we know that we can get a good listing gain in this. If you are investing in thespian for listing gain, then I will tell you what is the GMP of this. Are you seeing this? This is not a rabbit, this is zero. At this time, the grey market premium of Star Healthies is zero.
Not even a rupee is ready to give up around this price range. If we consider this price range, then not even a rupee is ready to give up. So why are you investing in this IPO? If you think that the health insurance sector will grow, I also think that the health insurance sector can grow a lot in India. There Isa lot of scope, but why should we invest in an IPO?
We will invest after IPO. I had forbidden you to invest in Paimio, but I am telling you that I have invested in Pat myself, not in IPO. When it was listed, after going to the discount, my average price is around 1400, at which price I have invested in this IPO. And now I am writing this blog, it is around 1800, so the profit has already happened, but it is not necessary to invest in IPO. I will tell you the IPO where you have to invest money, but according to my analysis, there will be a listing in the discount and you can lose money. It is possible that I am wrong, I am not a God, and I cannot tell everything accurately, but my analysis says that you can lose money in this, so you should avoid it.
If you think that the company is very good, you want to invest, then let ‘stalk after being invested. You are investing money, I do not have money, if you have profit, then your profit, if you have loss, then your loss, but I care about your loss, so the rest choice is yours.
So here the lot size is 16, if you consider one lot at a cut-off price, then your investment is of 14400 and in the retail category, you can invest a maximum of 1,87,200 in the retail category. Now, see this too, I have told you this too. The issue size of the company is that how much money is asking,7 to 49 crores want to pick up from the market, in which the fresh issue is of only 2000crores.
Means after the spin, only 2000 crores will go to the company and the rest of₹ 5 to 49 crores, more than₹ 5200 crores, this money will go to the previous investors of the company. This is an offer for sale, this is a fresh issue. So fresh issue is the money that goes to whom, which stays with the company itself to do its expansion and this will go to the existing shareholders of the company. So you can do your own analysis. Now let’s move forward. Along with this, some important dates, you will get an allotment on 7th of December. The refund will start from 8th of December.
Those who will get an allotment, no one will get a refund in this company. If you invest money in the Apothem you will not get refund. Why will you not get a refund? Because you will get an allotment. Try applying, people say that you do not get an allotment, then you will get an allotment, no refund will come to anyone. After this, the shares in Demit account will come on 9th of December and on 10th you can see the listing that many people are going to suffer.
This is my belief, there may be a profit. So you do one thing, the day there Isa listing, then you must comment on this blog below that you were saved from loss or you lost because according to my analysis, there is no profit.
Maybe I am wrong, maybe you will have a profit. So if you think you will have a profit in this, then also comment below. Why do you think you can get profit in Star Health? Rest, document on 10th of December. Okay, let’s move forward. So the things you have understood today, I have given a very fair comparison. It doesn’t matter to me.
I care about giving you the right guidance. The rest is your money. It is your choice. You may have to sit with Sheikh. If you have lot of money, then put it anywhere. Now I remembered Sheikh. We talk about oil. He made a lot of money from oil. So there is crude oil in the commodity, right? So now we have not made many blogs on commodity trading for you. So if you want that we make complete series on commodity trading, in which we guide you step by step. You need information on commodities, you need information on trading.