Unlisted shares of Niva Bupa Health Insurance Ltd continue to trade at zero GMP in the grey market, signalling loss or no profit for investors on the listing.
Niva Bupa Health Insurance IPO: The initial public offer of Niva Bupa Health Insurance Company Ltd, formerly Max Bupa Health Insurance Company, has received a 71 per cent subscription till 11:12 am on the second day of bidding on Friday. The IPO was opened on Thursday and received a 65 per cent subscription on the first day.
Till 11:12 am on Friday, the initial share sale received bids for 12,18,98,200 shares against 17,28,57,143 shares on offer, as per NSE data.
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The portion for qualified institutional buyers (QIBs) subscribed 79 per cent while the category for retail individual investors (RIIs) received 99 per cent subscription. Non-institutional investors part fetched 35 per cent of subscriptions.
Niva Bupa Health Insurance Company on Wednesday said it has mobilised Rs 990 crore from anchor investors.
The issue, with a price band of Rs 70-74 per share, will conclude on November 11.
The IPO allotment will be finalised on November 12, while its listing will take place on November 14.
Niva Bupa Health Insurance IPO GMP Today
According to market observers, unlisted shares of Niva Bupa Health Insurance Ltd continue to trade at zero GMP in the grey market, signalling loss or no profit for investors on the listing.
The GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
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Niva Bupa Health Insurance IPO: More Details
The IPO comprises a fresh issuance of equity shares worth Rs 800 crore and an offer-for-sale of Rs 1,400 crore worth shares by promoters.
As the IPO will be opened for public subscription between November 7-11, the allotment will be finalised on November 12. The share listing will likely take place on November 14.
The anchor book will be opened for institutional investors on November 6.
The Rs 2,200-crore IPO also comprises an offer-for-sale of Rs 1,400 crore worth shares by promoters. Through this, promoters Bupa Singapore Holdings Pte, and global private equity firm True North-owned Fettle Tone LLP will be selling Rs 350 crore, and Rs 1,050 crore worth shares.
Promoters hold 89.07 per cent shareholding in the company, including Bupa Singapore Holdings Pte’s 62.19 per cent stake, and Fettle Tone LLP 26.80 per cent.
Amongst public shareholders, India Business Excellence Fund IV is the biggest shareholder with 2.81 per cent stake, followed by V-Sciences Investments Pte (2.60 per cent), SBI Life Insurance Company (1.3 per cent), and A91 Emerging Fund II LLP (1.03 per cent).
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Niva Bupa Health Insurance & Its Financials
Niva Bupa Health Insurance is a Gurugram-based private health insurer. It had a market share of 17.29 per cent in the Indian SAHI market in the current fiscal 2025, increasing from 16.24 percent in the previous fiscal 2024, based on retail health GDPI.
It is India’s third-largest standalone health insurer (SAHI) and the second-fastest growing, driven by a Gross Direct Premium Income (GDPI) of Rs 5,494 crore for fiscal 2024.
On the financials front, the company recorded a net profit of Rs 81.85 crore in the financial year 2023-24, a jump from Rs 12.5 crore in the previous fiscal. However, its operating profit dropped sharply to Rs 188 crore from Rs 350.9 crore during the same period.
The insurance compnay has posted loss of Rs 18.8 crore in the three-month period ended June 2024, narrowing from loss of Rs 72.2 crore in the year-ago period, however, its operating profit stood at Rs 23.2 crore against operating loss of Rs 13.4 crore in the same period.
Niva Bupa Health Insurance: Peer Comparison
Niva Bupa faces peers like Star Health & Allied Insurance, which has an earnings per share (EPS) of Rs 14.48, a price-to-earning (PE) ratio of 36.97, and a return on net worth (RoNW) of 14.35 per cent.
ICICI Lombard General Insurance stands out with an EPS of Rs 39.03, a higher PE ratio of 45.92, and a RoNW of 17.17 per cent. The New India Assurance has an EPS of Rs 6.77, a PE ratio of 35.23, and a RoNW of 5.13 per cent.
Niva Bupa Health Insurance IPO’s book-running lead managers are ICICI Securities, Morgan Stanley India, Kotak Mahindra Capital, Axis Capital, HDFC Bank, and Motilal Oswal Investment Advisors. KFin Technologies is the registrar to the IPO.
