Niva Bupa Health Insurance IPO Day 3: Check Subscription Status, GMP Today
The initial public offer (IPO) of Niva Bupa Health Insurance Ltd is set to close today, Monday, after receiving a strong response from investors. According to market sources, the IPO has received a significant number of bids, with a total of 1.25 times subscription garnering bids for 21,54,61,200 shares.
As of 10:24 am, the IPO had received:
- Qualified Institutional Buyers (QIBs): 1.5 times subscription
- Retail Individual Investors (RIIs): 1.68 times subscription
- Non-Institutional Investors: 0.44 times subscription
The issue was opened with a price band of Rs 70-74 per share, and the IPO comprises a fresh issuance of equity shares worth Rs 800 crore and an offer-for-sale of Rs 1,400 crore.
Unlisted Shares Trading at Rs 3 Higher in Grey Market
Unlisted shares of Niva Bupa Health Insurance Ltd are trading Rs 3 higher in the grey market compared to its issue price. This indicates a potential listing gain of 4.05 per cent.
The grey market premium (GMP) is based on market sentiments and keeps changing. As of now, the GMP is based on an average of Rs 3 per share, suggesting a strong demand for the shares from investors in the grey market.
IPO Details
- Issue Size: Rs 2,200 crore
- Face Value: Rs 1
- Price Band: Rs 70-74 per share
- Offer Type:
- Fresh Issuance: Rs 800 crore
- Offer-for-Sale: Rs 1,400 crore
Shareholding Details
Niva Bupa Health Insurance has a promoter-driven structure of promoters holding 89.07% stake in the company.
As of my knowledge cutoff, among public shareholders who held significant stakes were India Business Excellence Fund IV (2.81%), V-Sciences Investments Pte Limited (2.60%), SBI Life Insurance Company (1.3%), and A91 Emerging Fund II LLP (1.03%).
Financials
Niva Bupa Health Insurance is a private health insurer that had recorded a net profit of Rs 81.85 crore in the financial year 2023-24, a sharp increase from Rs 12.5 crore in the previous fiscal.
However, its operating profit dropped sharply to Rs 188 crore, compared to Rs 350.9 crore in the same period.
Peer Comparison
Niva Bupa Health Insurance faces peers like Star Health & Allied Insurance and ICICI Lombard General Insurance Insurance. However, it is worth noting that the company's financials and performance may not be comparable to its peers due to differences in business models and operating strategies.
The IPO will conclude with the allotment of shares on November 12, followed by their listing on November 14.
Book-Running Lead Managers
The book-running lead managers for Niva Bupa Health Insurance IPO are ICICI Securities, Morgan Stanley India, Kotak Mahindra Capital, Axis Capital, HDFC Bank, and Motilal Oswal Investment Advisors.