Niva Bupa Health Insurance Company Debuts on Stock Exchanges with Flat Opening

Mumbai: Niva Bupa Health Insurance Company, India's latest health insurance company, marked its debut on stock exchanges with shares closing flat, following weak conditions in the equity markets. The company raised Rs 2,200 crore through its initial share sale and saw its shares open higher at Rs 78.14, up 5.6 percent over the issue price.

However, despite a strong opening, Niva Bupa's shares couldn't sustain their gains for long and finished at Rs 74.02 on the NSE, up 0.03 percent with 3.88 crore equity shares traded. The company's stock also closed flat at Rs 74 on the BSE, after hitting an intraday high of Rs 80.94 and low of Rs 73.60.

The company's promoter-backed share sale was subscribed 1.8 times during November 7-14, with shares valued at Rs 13,520 crore. Niva Bupa plans to utilize fresh issue proceeds for augmentation of its capital base to maintain and strengthen solvency levels, and general corporate purposes.

With this listing, Niva Bupa becomes the fourth health insurer in the country after ICICI Lombard General Insurance, Star Health and Allied Insurance, and The New India Assurance Company. The company is a joint venture between the Bupa Group and True North-owned Fettle Tone LLP providing health insurance services.

The weak performance of equity markets on November 14, marked by a 10.4 percent decline in the Nifty 50 index since its record high of September 27, has also impacted the debut shares of various companies on stock exchanges today.