Ace Investor: This Rakesh Jhunjhunwala stock hit a new low on June 30! What should investors do?

The ace Investor-owned Star Health and Allied Insurance Company shares have witnessed a steep fall in the past trading days.

Star Health and Allied Insurance Company is a specialist in Health Insurance in India and provides quality service at the best rates and also has the best health insurance policies and solutions suitable to any and every type of health need. As the first stand-alone health insurance company in India, it is committed to the service of the insured. Wide range of Health Insurance Products to choose from, from family floater schemes to Senior Citizen Health coverage it has a diversified product portfolio for everyone.

On 30 June 2022, the stock hit a new all-time low at Rs 469.05 on BSE’s intra-day trade. The share price had touched Rs 703.35 on 14 June 2022, thereafter the stock of this insurance company plummeted. The stock has a 52-week high of Rs 940. Currently, it is trading almost 48% down from its 52-week high share price.

On 28 June 2022, Star Health and Allied Insurance announced that it has signed a Corporate Agency agreement with IDFC FIRST Bank, for the distribution of its health insurance solutions. Under this strategic agreement, Star Health and Allied Insurance will offer its best-in-class health insurance products to the Bank’s customers using IDFC FIRST Bank’s state-of-the-art digital platform and its wide distribution network. Despite this news, in the last 5 trading sessions, the share price has tanked around 10%.

The company is a part of Rakesh Jhunjhunwala’s portfolio and he is also a promoter of the company. As per the shareholding pattern data as of 31 March 2022, together Rakesh Jhunjhunwala held a 14.4% stake and his wife held a 3.11% stake in this insurance company. The stake translates into 100,753,935 shares of the company out of which he holds 82,882,958 shares and his wife has 17,870,977 shares.

On 1 July 2022, at 2:35 pm, the scrip is trading at Rs 471.25, a decline of 3.59 %.