Niva Bupa Health Insurance Shares Allocation Basis Likely to be Finalized on Tuesday

Kolkata, November 12, 2023 - Niva Bupa Health Insurance Company Limited is on the verge of finalizing the basis of allotment for its IPO (Initial Public Offering), days after receiving lukewarm response from investors.

The private healthcare insurance player's shares were floated in a price band of Rs 70-74 per share with a minimum lot size of 200 shares. Despite the attractive auction, the issue was only subscribed to an absolute value of 1.80 times, indicating that only about one-fifth of the allocated shares would be allotted.

However, qualified institutional bidders (QIBs) showed interest in subscribing 2.06 times, while retail investors took a liking to the shares and bid for them 2.73 times. On the other hand, non-institutional investors failed to capitalize on the opportunity with only 68 per cent of their bids being successful.

With not a single share commanding any grey market premium (GMP) due to its underwhelming response, it is unlikely that investors would benefit from listing gains as the shares are set to be listed on BSE and NSE with a tentative date slated for Thursday, November 14. Despite this, Kfin Technologies, the registrar of the issue, has opened up an online platform to check allotment status.

Applicants had been notified about the allocation of their funds or revocation of their IPO mandate via SMS, email, or phone by Wednesday, November 13. Investors can access the website https://www.bseindia.com/investors/appli_check.aspx or visit Kfin Technologies Limited to discover how they would be receiving shares.

With a joint venture between Bupa Group and Fettle Tone LLP incorporated in 2008 that promises an "holistic proposition" for delivering customers access to comprehensive health ecosystem, the Niva Bupa Health Insurance IPO remains subject to several challenges.