Niva Bupa Health Insurance IPO Lists At 6% Premium: Should You Hold, Sell or Buy?

Mumbai: Niva Bupa Health Insurance made a positive debut on the stock market, listing its shares at a 6.08 per cent premium to its issue price of Rs 74.

The company's initial public offer (IPO), which was moderately subscribed 1.9 times, reflected a cautious investor sentiment, despite showing strong growth and a positive turnaround in recent years.

According to Shivani Nyati, head of wealth at Swastika Investmart Ltd, investors who participated in the IPO can consider holding their shares but should closely monitor the company's performance and broader market conditions before making any investment decisions.

Nyati noted that while Niva Bupa has shown strong growth, short-term performance concerns and the IPO's pricing seemed to have tempered investor enthusiasm for the stock.

On the first day of listing, Niva Bupa share price was trading at Rs 78.5 apiece on the Bombay Stock Exchange (BSE), which is a 6.08 per cent premium from its issue price. Later, the shares faced selling pressure and were traded at Rs 76.1 apiece as of 10:38 am on Thursday.

The Niva Bupa Health Insurance Company Limited had mobilized Rs 990 crore from anchor investors for the IPO, which was part of a dual-tranche offering worth Rs 2,200 crore. The company is using the net proceeds to strengthen its capital base and fund general corporate purposes.

This move marks the second standalone health insurer to float an initial public offer after Star Health & Allied Insurance Company.