Niva Bupa Health Insurance Company's IPO Hailed as Decent Affair with Over 65% Subscription

Mumbai, Nov 13 (ANI): The initial public offering (IPO) of Niva Bupa Health Insurance Company has witnessed a decent response from investors, closing the third day of bidding with an overall subscription of 1.17 times.

According to BSE data, a total of 28,69,30,600 equity shares were bid for on Monday, representing 1.66 times allocation, while the offer was made by subscribers for Rs 18,82 crore on the same date.

The company is raising its share in the price band of Rs 70-74 per share through a fresh share sale and offer-for-sale (OFS) worth Rs 2,200 crore. Investors can apply from 200 shares onwards with a maximum limit subject to availability.

Niva Bupa Health Insurance Company's health insurance business witnessed significant growth, increasing its overall generalised premium income (GDPI) by 41.37 per cent in FY22-24, significantly outpacing the industry average of 21.42 percent during the same period.

Brokerages have a positive view on the IPO with several recommending subscription for long-term citing rising demand for healthcare products and strong market presence.

However some brokerages such as Bajaj Broking stated that intense competition and aggressive valuation may affect the company's growth prospects.

"It is no surprise that there was almost no grey market activity in its IPO, but still listing gains are a concern. Grey market premium stood high at Rs 3 over the weekend for Niva Bupa health insurance shares," said experts

As opposed to the other competitors with sky rocket stocks, Niva Bupa shares were not seeing any speculative buying amid fears of listing gains.

Niva Bupa Health Insurance will list its shares on both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) from November 14.