Niva Bupa Health Insurance IPO Over-subscribed; Grey Market Sentiments Remain Positive
Mumbai: The initial public offering (IPO) of Niva Bupa Health Insurance Limited has been oversubscribed by investors in the Indian primary market, with the subscription status indicating a strong response from both retail and institutional bidders.
The public issue has been subscribed to 1.17 times in the first two days of bidding, according to the IPO subscription status, which is an indication of high demand for the listed company's shares. The book build issue is expected to close on November 11, 2024, with just one day left for investors to apply.
Grey market sentiments remain positive, with Niva Bupa Health Insurance shares trading positively in the grey market. The Grey Market Premium (GMP) of ₹5 per share has remained unchanged from the weekend, indicating that investors are still optimistic about the listed company's prospects.
According to market observers, a trend reversal on Dalal Street could improve grey market sentiments, but for now, Niva Bupa Health Insurance IPO GMP remains positive. The secondary market has witnessed a range-bound trend with cautious trading, which is further contributing to the positivity in grey market premiums.
IPO Subscription Status:
By 11:00 AM on day 3 of bidding, the public issue had been subscribed to 1.28 times, with the retail portion fully subscribed and the NII segment also showing strong demand. The QIB segment has subscribed to approximately 1.50 times.
Industry analysts have assigned a 'subscribe for the long term' tag to the IPO, citing the listed company's diversified business model and healthy financial performance over the past three fiscal years. The review attributed a gross written premium (GWP) of ₹2809.97 crore or a net profit loss of ₹196.53 crore in FY22, ₹4073.03 crore or ₹12.54 crore in FY23, and ₹5607.57 crore or ₹81.85 crore in FY24.
The review further noted that historically, insurance companies typically experience a sluggish first half with most activities occurring in the second half of the fiscal year.
What's Next?
Niva Bupa Health Insurance will now proceed to list its shares on the Indian Stock Exchange. Investors can still apply for the public issue until November 11, 2024, so it's essential to carefully evaluate your investment horizon and strategy before participating in this IPO.
For investors considering Niva Bupa Health Insurance shares, a 'subscribe' tag has been assigned by Canara Bank Securities, indicating strong demand for the listed company's shares. Market observers will be closely watching the trend reversal on Dalal Street to determine future market sentiments.
Update: The Grey Market Premium (GMP) of ₹5 per share remains unchanged from the weekend, and market experts are optimistic about potential improvements in grey market sentiment with a trend reversal on Dalal Street.