Niva Bupa Well being Insurance coverage IPO itemizing: Niva Bupa Well being Insurance coverage shares made a good debut on the bourses on Thursday, November 14 as they listed at ₹78.14 on NSE, a premium of 5.5 % over the problem value of ₹74. In the meantime, on BSE, it listed at ₹78.5, up 6.08 % from IPO value.
Niva Bupa’s preliminary public providing (IPO), valued at ₹2,200 crore, was open for subscription from November 7 to November 11. The medical insurance providers supplier’s shares had been priced within the vary of ₹70-74 per share for the problem.
Following the three days of bidding, Niva Bupa IPO closed with robust demand, garnering 1.9 occasions bids. The IPO obtained bids for 31.13 crore shares in opposition to 16.3 crore shares on supply. The retail investor phase was booked 2.88 occasions, whereas the non-institutional buyers (NII) class wasn’t totally subscribed and was bid 0.71 occasions. The certified institutional consumers (QIB) portion was subscribed 2.17 occasions.
Concerning the IPO
Niva Bupa IPO was a mix of recent difficulty of 10.81 crore shares aggregating to ₹800.00 crore and supply on the market of 18.92 crore shares aggregating to ₹1,400.00 crore. The corporate raised ₹990 crore from anchor buyers on November 6, 2024.
Retail buyers might apply with a minimal lot dimension of 200 shares, requiring a minimal funding of ₹14,800. The corporate plans to make use of the online proceeds to bolster its capital base, aiming to reinforce its solvency ranges, in addition to for basic company functions.
Of the online supply, 30 % is reserved for certified institutional bidders (QIBs). Non-institutional buyers (NIIs) and retail buyers can have allocations of 10 % and 10 % of the online supply, respectively.
ICICI Securities Restricted, Morgan Stanley India Firm Pvt Ltd, Kotak Mahindra Capital Firm Restricted, Axis Capital Restricted, Hdfc Financial institution Restricted and Motilal Oswal Funding Advisors Restricted had been the e-book working lead managers of the Niva Bupa Well being Insurance coverage IPO, whereas Kfin Applied sciences Restricted was the registrar for the problem.
Brokerage Views
Most brokerages have steered subscribing to the Niva Bupa IPO, with numerous views on funding horizons.
Anand Rathi has suggested buyers to subscribe to the IPO with a long-term outlook, highlighting the corporate’s ambition to create a strong, customer-centric medical insurance platform enriched with wellness packages, physician consultations, diagnostics, and medication supply providers. The analysts famous that Niva Bupa plans to additional develop its medical insurance ecosystem by creating well being evaluation instruments, wellness content material, and partnerships for digital consultations and residential supply of medicines. On the higher value band, the corporate’s valuation stands at a P/BV of 6.1x, translating to a market capitalization of ₹13,520 crore post-issue. Regardless of the valuation showing totally priced, Anand Rathi maintained a ‘Subscribe – Lengthy Time period’ advice.
In the meantime, Swastika Investmart expressed a extra cautious stance, recommending the IPO primarily for high-risk buyers. Whereas acknowledging Niva Bupa’s management and fast progress within the Indian medical insurance market, Swastika highlighted that the corporate’s profitability was optimistic in FY23 however famous a return to adverse earnings within the first quarter of the present fiscal 12 months. The brokerage agency identified that the IPO pricing appeared aggressive, warranting a extra cautious strategy for potential buyers.
Concerning the Firm
Established in 2008, Niva Bupa Well being Insurance coverage Firm Restricted is a three way partnership between the Bupa Group and Fettle Tone LLP, specializing in medical insurance. The corporate delivers an all-encompassing strategy, enabling prospects to entry a broad well being ecosystem and repair capabilities through its Niva Bupa Well being cell app and web site. Between the monetary years ending March 31, 2023, and March 31, 2024, the corporate skilled a 44.05% rise in income, alongside a big 552.73% improve in revenue after tax (PAT).
Disclaimer: The views and proposals made above are these of particular person analysts or broking firms, and never of Mint. We advise buyers to verify with licensed specialists earlier than taking any funding selections.
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