New Delhi, Dec 10 (IANS): Shares of Star Health and Allied Insurance Company were listed on Friday with a 6 per cent discount than its issue price.

The shares of the online insurance service provider listed at Rs 845 per scrip against its issue price of Rs 900.

The shares, however, pared much of its early losses and closed the day with a marginal gain.

At the end of the day's trade, the shares settled at Rs 901, up Re 1 or 0.1 per cent on the debut session, NSE data showed.

"Expensive valuations and dent in profitability due to Covid-19 were key concerns for the investors. However, the long-term outlook for the company is bullish thanks to the strong brand name and low penetration of health insurance in India," said Parth Nyati, Founder at Tradingo.

"Investors who applied for this IPO for listing gains can exit while long-term investors should keep patience and hold this stock. New investors can wait for some time before taking entry because we have to understand at what level the market will be comfortable."

The market capitalisation of the insurer is worth Rs 51,854 crore, data showed.

"The long-term outlook for the industry and Star health insurance is promising therefore we can expect buying interest at lower levels but it is difficult to say the exact level," said Santosh Meena, Head of Research at Swastika Investmart.

"Those who applied for this IPO should hold it for the long term while those who are looking for a fresh entry should give some time to know at what level it manages to attract demand."