"Unlisted Shares of Niva Bupa Health Insurance Soar as IPO Receives 1.9 Times Subscriptions on Day 3"

Mumbai, Novemer 11, 2024: The initial public offer (IPO) of Niva Bupa Health Insurance Company Ltd, formerly Max Bupa Health Insurance Company, has garnered significant attention in the markets.

As of Monday, November 11, the IPO received 1.90 times subscriptions, garnering bids for 31,13,62,800 shares as against the 16,35,13,515 shares on offer.

The issue, which was opened with a price band of Rs 70-74 per share, is going to be closed today.

According to market observers, unlisted shares of Niva Bupa Health Insurance Ltd are trading at zero GMP, indicating a flat or discount listing on November 14.

Among institutional investors, the portion for qualified institutional buyers (QIBs) received a subscription of 2.17 times, while retail individual investors fetched 2.88 times subscriptions. Non-institutional investors part-fetched 0.71 times subscriptions.

Niva Bupa Health Insurance Company had mobilised Rs 990 crore from anchor investors, which is a significant portion of the total IPO amount.

As the IPO will be opened for public subscription between November 7-11, the allotment will be finalised on November 12. The share listing will likely take place on November 14.

Promoters Bupa Singapore Holdings Pte and global private equity firm True North-owned Fettle Tone LLP will be selling Rs 350 crore and Rs 1,050 crore worth shares respectively through this offer-for-sale component of the IPO.

Among public shareholders, India Business Excellence Fund IV is the biggest shareholder with a 2.81% stake, followed by V-Sciences Investments Pte at 2.60%, SBI Life Insurance Company at 1.3%, and A91 Emerging Fund II LLP at 1.03%.

Niva Bupa Health Insurance & Its Financials

The company was founded and is headquartered in Gurugram. It has a market share of 17.29% in the Indian SAHI market in the current fiscal, based on retail health Gross Direct Premium Income (GDPI).

It also released its financial reports for 2023-24, showing a net profit of Rs 81.85 crore and an operating profit of Rs 188 crore.

The company has posted loss of Rs 18.8 crore in the three-month period ended June 2024, narrowing from loss of Rs 72.2 crore in the year-ago quarter.

Niva Bupa faces peers like Star Health & Allied Insurance, which has an earnings per share (EPS) of Rs 14.48, and ICICI Lombard General Insurance stands out with an EPS of Rs 39.03.