Niva Bupa IPO: The preliminary public providing for Niva Bupa Well being Insurance coverage Firm Ltd, beforehand often called Max Bupa Well being Insurance coverage Firm, opens for subscription in the present day (Thursday, November 7) and can shut on Monday, November 11. This difficulty, with a value band of ₹70-74, raised ₹990 crore from anchor buyers on Wednesday, November 6.
Among the many overseas and home establishments that acquired shares within the anchor spherical are Zulia Investments Pte, Amansa Holdings, A91 Rising Fund II LLP, Morgan Stanley, Constancy, and Authorities Pension Fund International, as indicated in a round posted on the BSE’s web site.
The Niva Bupa IPO lot measurement is 200 fairness shares and in multiples of 200 fairness shares thereafter. Niva Bupa Well being Insurance coverage IPO has reserved not lower than 75% of the shares within the public difficulty for certified institutional patrons (QIB), no more than 15% for non-institutional Institutional Buyers (NII), and no more than 10% of the supply is reserved for retail buyers.
Niva Bupa Well being Insurance coverage Firm goals to satisfy this purpose by means of its medical health insurance options and providers that assist clients handle their healthcare expertise by providing entry to a complete well being ecosystem.
The corporate stands out as one of many high standalone retail well being insurers (SAHI) in India, reporting a Gross Direct Written Premium (GDPI) of ₹5,499.43 crore for the fiscal yr 2024.
The Gross Written Premium (GWP) for the insurance coverage supplier rose by 37.68 p.c, reaching ₹5,607.57 crore in fiscal 2024 in comparison with ₹4,073.03 crore within the earlier yr. Moreover, the revenue elevated considerably to ₹81.85 crore in fiscal 2024, up from ₹12.54 crore in fiscal 2023.
As per the crimson herring prospectus (RHP), the corporate’s listed friends are Star Well being and Allied Insurance coverage Firm Ltd (with a P/E of 38.27), ICICI Lombard Normal Insurance coverage Firm Ltd (with a P/E of 48.91), and The New India Assurance Firm Ltd (with a P/E of 28.62).
Niva Bupa IPO Subscription Standing
Subscription for the general public difficulty will open at 10:00 IST throughout Thursday’s offers.
Niva Bupa IPO Overview
Bajaj Broking
The brokerage reported that previously three fiscal years, the corporate has achieved a mean earnings per share (EPS) of Rs. 0.05 (primary) together with a mean return on internet price (RoNW) of -2.58%. The share difficulty is valued at a price-to-book worth (P/BV) of 6.19, calculated from its internet asset worth (NAV) of Rs. 11.95 as of June 30, 2024, and a P/BV of 4.73 primarily based on its post-IPO NAV of Rs. 15.66 per share (on the higher restrict).
Once we modify FY25 earnings to replicate the absolutely diluted fairness base after the IPO, the proposed value results in a adverse price-to-earnings (P/E) ratio. Utilizing FY24 earnings, the P/E ratio is calculated to be 642.22. Consequently, this example appears to be priced fairly aggressively.
“We suggest to subscribe the IPO with a long-term perspective,” the brokerage stated.
Swastika Investmart
The brokerage famous in its report that the corporate is a distinguished contender in India’s medical health insurance sector and ranks among the many quickest-expanding corporations within the trade. It achieved a good restoration in FY23, though current earnings from the primary quarter of the continued fiscal yr are displaying adverse outcomes. The pricing for the IPO appears a bit aggressive. It’s prompt just for high-risk buyers serious about making use of.
Niva Bupa IPO Particulars
Niva Bupa Well being Insurance coverage IPO, valued at ₹2,200 crore, features a contemporary issuance of fairness shares amounting to ₹800 crore and a promoters’ supply on the market of as much as ₹1,400 crore. The corporate scaled down the problem measurement from its preliminary purpose of elevating ₹3,000 crore.
As a part of the supply on the market, Fettle Tone LLP will divest shares price ₹1,050 crore, whereas Bupa Singapore Holdings Pte Ltd will promote shares valued at ₹350 crore. At the moment, Bupa Singapore Holdings Pte holds a 62.19 p.c stake, and Fettle Tone LLP owns a 26.8% stake within the insurance coverage firm.
The agency plans to make use of the web proceeds from the contemporary fairness issuance to boost its capital base and enhance solvency ranges, with a portion allotted for common company wants.
The book-running lead managers for the Niva Bupa Well being Insurance coverage IPO embody ICICI Securities Ltd, Morgan Stanley India Firm Pvt Ltd, Kotak Mahindra Capital Firm Ltd, Axis Capital Restricted, HDFC Financial institution Ltd, and Motilal Oswal Funding Advisors Ltd, with Kfin Applied sciences Ltd serving because the registrar for the providing.
Niva Bupa IPO GMP in the present day
Niva Bupa Well being Insurance coverage IPO GMP or gray market premium was ₹0, which meant shares have been buying and selling at their difficulty value of ₹74 with no premium or low cost within the gray market, in keeping with inventory market observers.
‘Gray market premium’ signifies buyers’ readiness to pay greater than the problem value.
Disclaimer: The views and suggestions above are these of particular person analysts, specialists and broking firms, not of Mint. We advise buyers to verify with licensed specialists earlier than making any funding choice.
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