Niva Bupa Health Insurance IPO Hits Indian Primary Market, Receives Overwhelming Response

Niva Bupa Health Insurance IPO Hits Indian Primary Market, Receives Overwhelming Response

Niva Bupa Health Insurance IPO Hits Indian Primary Market, Receives Overwhelming Response

In a significant development for small cap shareholders, Niva Bupa Health Insurance Limited's initial public offering (IPO) made its debut on the Indian primary market on November 7th, 2024. The public issue has been oversubscribed, with an impressive subscription ratio of 1.17 times in its book build phase.

The public issue is currently open until November 11th, 2024, after which investors will need to act swiftly if they wish to participate. The company's shares have continued to trade positively in the grey market, with experts attributing this trend to strong demand and positive investor sentiment.

Niva Bupa Health Insurance IPO-GMP Remains Positive

According to market observers, the Grey Market Premium (GMP) of Niva Bupa Health Insurance has remained unchanged at ₹5 per share since Friday. Despite the market's range-bound trend and cautious approach in the secondary market, GMP has stayed positive due to consistent investor demand.

Subscription Status Update

As of 3:18 PM on day three of bidding, the public issue has been subscribed 1.68 times, with retail portion subscriptions at 2.54 times and non-institutional investors (NII) segment booking 0.65 times, while qualified institutional buyers (QIBs) have subscribed 1.90 times.

Analysts' Take

Bajaj Capital has assigned a 'subscribe for the long term' rating to Niva Bupa Health Insurance Co. Ltd., citing impressive financial performance over the past three fiscal years – ₹2809.97 crore in gross written premium and ₹81.85 crore in net profit (FY24). They also noted that historically, insurance companies face sluggish first-half performances with increased activity during the second half.

Canara Bank Securities has also expressed a 'subscribe' opinion, citing Niva Bupa Health Insurance's diversified channel mix and individual agent contributions to their business.

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