Niva Bupa Health Insurance IPO Sees Decent Response from Investors on Third Day; 65% Subscription on First Day

Niva Bupa Health Insurance IPO Sees Decent Response from Investors on Third Day; 65% Subscription on First Day

Mumbai: The third day of the bidding process for Niva Bupa Health Insurance Company's initial public offering (IPO) saw a decent response from investors, with the issue getting subscribed 1.66 times as of 3 pm on Monday, November 11.

The IPO, which opened on Thursday, aims to raise Rs 2,200 crore, including a fresh share sale of Rs 800 crore and an offer-for-sale (OFS) of up to 189,189,189 equity shares worth Rs 1,400 crore. Investors can apply for a minimum of 200 shares and its multiples thereafter.

As per the data from BSE, investors made bids for 28,69,30,600 equity shares on Monday, surpassing the 17,28,57,143 equity shares offered by QIBs and NIIs as of 3 pm. The retail investor quota saw a subscription of 2.49%, while the portion reserved for QIBs was subscribed 1.90 times. Non-institutional investors (NIIs) made bids for 62% of their allocations.

The company is selling its shares in the price band of Rs 70-74 apiece. Niva Bupa Health Insurance Company, incorporated in 2008, offers a holistic proposition by providing customers access to a comprehensive health ecosystem and service capabilities through its Niva Bupa Health mobile application and website.

Brokerages have mostly expressed positive views on the issue, pointing to rising demand for healthcare products, strong market share, and robust growth potential. However, concerns over competition, inconsistent numbers, and aggressive valuations may dent investor sentiments.

Niva Bupa Health Insurance has reported a net loss of Rs 18.82 crore with revenue of Rs 1,124.90 crore in the quarter ended June 30. The company reported a net profit of Rs 81.85 crore with revenue of Rs 4,118.63 crore for the financial year ended March 31, 2024.

The issue concluded today and shares of Niva Bupa Health Insurance Company will be listed on both BSE and NSE on Thursday, November 14.