Niva Bupa IPO: The Rs 2,200 crore IPO of general insurance sector company Niva Bupa Health Insurance is opening today i.e. November 7. Investors will be able to bid in it till November 11. Its price band has been fixed at Rs 70 to Rs 74.
The Initial Public Offering (IPO) of general insurance sector company Niva Bupa Health Insurance Company Limited is opening from today. Bids can be made for the company’s Rs 2,200 crore IPO till November 11. Its price band has been fixed at Rs 70 to Rs 74.
When was the company formed
This health insurance company was formed in the year 2008. It is a joint venture of Bupa Group and Fetal Tone LLP. Earlier the name of this company was Max Bupa Health Insurance Company. Later it was changed to Niva Bupa Health Insurance. Bupa Singapore Holdings Private Limited has 62.19% stake in this health insurance company, while Fetal Tone LLP has 26.8% stake.
Raised 990 crores from anchor investors
The bidding date for anchor investors in this IPO was November 6. In this, the company has received Rs 990 crore. During this time, all domestic and foreign companies have invested money. According to a circular uploaded on the BSE website, foreign investors like Julia Investments PTE, Amansa Holdings, A91 Emerging Fund II LLP, Morgan Stanley, Fidelity and Government Pension Fund Global have invested money in it. Apart from this, Nippon India Mutual Fund (MF), Axis MF, Tata MF and DSP MF are also included in these.
What is the company’s plan
Niva Bupa has fixed the price band of the IPO at Rs 70-74 per share. New shares worth Rs 800 crore will be issued in this IPO. There is also a plan for a sale offer (OFS) of up to Rs 1,400 crore by the promoters. The company was earlier planning to raise Rs 3,000 crore, although later it reduced the size of the issue.
How much reservation for whom
In the Niva Bupa IPO, 75 per cent is reserved for Qualified Institutional Buyers (QIB), 10 per cent for retail investors and 15 per cent for NII. Allotment of shares can be done on November 12. While the refund process will be done on November 13. Shares of successful applicants will be transferred to demat on November 13. Listing of shares on BSE and NSE can happen on November 14, 2024.
What analysts are saying
Rajan Shinde, Research Analyst at Mehta Equities Limited, says that the IPO of Niva Bupa Health Insurance Company Limited gives investors an opportunity to invest in one of India’s fastest growing standalone health insurers with a strong product portfolio, strategic innovation and digital advancements. He believes that the company’s high-margin, high-LTV products have led to significant growth in their retail health business. The company has managed to increase the average ticket size and improve its claim ratio while demonstrating operational efficiency. Investors who want to invest for the long term can subscribe to it.
What is GMP
On the morning of November 7, zero premium was being quoted for this IPO in the grey market. According to investorgain.com, the upper band of this IPO is Rs 74 and this could be its price.
Disclaimer: The suggestions given in this analysis are of individual analysts or broking companies, not of NBT. We advise investors to consult certified experts before taking any investment decision. Because stock market conditions can change rapidly.
