Shares of Niva Bupa Well being Insurance coverage, a latest entrant on Dalal Road, prolonged their successful streak for the third consecutive buying and selling session on Thursday, December 5. The inventory surged by one other 11.2 per cent to achieve a recent report excessive of ₹109.34 per share, bringing its three-day cumulative achieve to a powerful 47 per cent.
What triggered the rally?
The rally was fueled by stories suggesting a possible discount within the Items and Providers Tax (GST) price on well being and life insurance coverage insurance policies. In response to a PTI report, Finance Minister Nirmala Sitharaman said on Monday that the price of insurance coverage for policyholders is prone to lower if the GST Council recommends a price minimize for well being and life insurance coverage insurance policies.
In a written reply within the Lok Sabha, she mentioned the GST Council, in its September 9 assembly, had beneficial constituting a Group of Ministers (GoM) to holistically look into the problems pertaining to GST on life insurance coverage and medical insurance, the information company reported.
At the moment, an 18 per cent GST is levied on premiums paid for all times and medical insurance insurance policies. The GST Council, chaired by Sitharaman and comprising her state counterparts, is slated to satisfy on December 21, the place the GoM report on the discount of GST on life and medical insurance is anticipated to be mentioned.
Regardless of the market buzz, the corporate clarified that it has not acquired any official communication from the federal government relating to a change in GST charges on medical insurance premiums. “The corporate shouldn’t be conscious of any such developments, aside from stories showing within the media. Subsequently, we can not confirm or verify the information,” it said in an change submitting on Wednesday.
Niva Bupa Well being Insurance coverage is a three way partnership between the Bupa Group and Fettle Tone LLP, specialising in medical insurance. The corporate delivers an all-encompassing method, enabling clients to entry a broad well being ecosystem and repair capabilities by way of its Niva Bupa Well being cellular app and web site.
For the quarter ended September 2024 (Q2FY25), the corporate reported a internet revenue of ₹13 crore, marking a major turnaround from a internet lack of ₹8 crore in the identical interval final yr. Whole revenue for the quarter stood at ₹1,360 crore, up from ₹992 crore within the corresponding quarter of the earlier yr, reflecting sturdy development.
The corporate’s shares made a good debut on the inventory exchanges on Thursday, November 14, itemizing at ₹78.14 on the NSE, a 5.5% premium over the problem worth of ₹74. The preliminary public providing (IPO), valued at ₹2,200 crore, was open for subscription between November 7 and November 11.
The IPO witnessed sturdy investor curiosity, receiving bids for 31.13 crore shares in opposition to the 16.3 crore shares on supply, attaining an general subscription of 1.9 instances.
