November 14, 2024
New Delhi, India
Niva Bupa Health Insurance IPO
Niva Bupa Health Insurance shares made a notable debut on the stock market today. The stock listed at ₹78.14 on the NSE, reflecting a 5.5% premium over its issue price of ₹74. On the BSE, it opened at ₹78.5, marking a 6.08% rise from the IPO price, indicating a positive response from investors.
IPO Details and Subscription
- IPO Size: ₹2,200 crore
- Issue Price Range: ₹70-74 per share
- Subscription Period: November 7 to November 11
- Total Bids Received: 1.9 times the offer
- Retail Investor Subscription: 2.88 times
- Non-Institutional Investors (NII): Subscribed 0.71 times
- Qualified Institutional Buyers (QIBs): Subscribed 2.17 times
The IPO was a mix of:
- Fresh Issue: 10.81 crore shares worth ₹800 crore
- Offer for Sale (OFS): 18.92 crore shares totaling ₹1,400 crore
Anchor Investors: Niva Bupa raised ₹990 crore from anchor investors on November 6, boosting investor confidence ahead of the listing.
Allocation and Investment Requirements
- QIB Allocation: 30% of the net offer
- NII Allocation: 10%
- Retail Investor Allocation: 10%
- Minimum Investment: Retail investors could apply for a minimum lot size of 200 shares, requiring an investment of ₹14,800.
Company Overview and Financial Performance
Established in 2008, Niva Bupa Health Insurance Company Limited is a joint venture between the Bupa Group and Fettle Tone LLP. The firm specializes in providing comprehensive health insurance services, with offerings accessible via its Niva Bupa Health mobile app and website.
- Revenue Growth: 44.05% increase from FY 2023 to FY 2024
- Profit After Tax (PAT): Surged by 552.73%, highlighting strong financial health
The company aims to utilize the IPO proceeds to:
- Strengthen its capital base
- Enhance solvency levels
- Support general corporate purposes
Lead Managers and Registrar
- Book Running Lead Managers:
- ICICI Securities Ltd
- Morgan Stanley India Co. Pvt Ltd
- Kotak Mahindra Capital Co. Ltd
- Axis Capital Ltd
- HDFC Bank Ltd
- Motilal Oswal Investment Advisors Ltd
- Registrar: Kfin Technologies Ltd
Market Outlook
The successful listing of Niva Bupa Health Insurance, especially amid market volatility, reflects robust investor interest in the health insurance sector. With strong financial performance and a strategic growth plan, the company is poised to capitalize on rising demand for comprehensive health coverage.
Investors now look forward to the company’s performance in the secondary market and its plans for leveraging the IPO proceeds to drive future growth.
Stay tuned to CurrencyVeda for more updates on market trends and investment insights!
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