Niva Bupa Health Insurance IPO Receives 1.9x Subscription Rate on Third Day of Bidding, Checks GMP Today
The initial public offer (IPO) of Niva Bupa Health Insurance Company Ltd has garnered a significant interest from investors, with the offer receiving 1.90 times subscription on its third day of bidding, surpassing the projected demand.
According to market trends and analysis, unlisted shares associated with the company are currently trading at zero GMP (Grey Market Premium), indicating that there is no premium being demanded for the IPO listing. This comes as a positive sign for the company as it suggests investor interest on par or even above market expectations.
The offer of Niva Bupa Health Insurance has been highly anticipated among investors, given its robust financial performance and steady growth prospects in the Indian health insurance sector. The initial public offer price band of Rs 70-74 per share was opened to attract a significant number of investors, and it seems that this strategy has borne fruit.
The company's market share in the Indian SAHI (Standalone Accident and Health Insurance) market stands at 17.29%, which is impressive when considered against the backdrop of intense competition from other players such as Star Health & Allied Insurance and ICICI Lombard General Insurance.
The financial performance of Niva Bupa Health Insurance is a major drawcard for investors, with significant revenue growth being reported in its latest fiscal year. The company's net profit stood at Rs 81.85 crore in the financial year 2023-24, up sharply from Rs 12.5 crore in the previous period.
The company will close the IPO on Monday and allot shares to those who have submitted their bids before the cut-off date of November 11. The listing of Niva Bupa Health Insurance's shares is slated for November 14.
This IPO has garnered significant interest among institutional and retail investors alike, with qualified institutional buyers (QIBs) securing a subscription ratio of 2.17 times, while retail individual investors have secured a ratio of 2.88 times subscription.
"We are optimistic about Niva Bupa Health Insurance's future prospects as the company continues to benefit from government initiatives promoting health insurance, and its impressive market share growth", said [Name], Director at a financial research firm, who predicted that this IPO would be well-received by investors.
As with any major IPO, market sentiment will continue to evolve in the days following the allotment of shares, with GMP or premiums potentially rising if investor confidence remains steady.