Niva Bupa Health Insurance IPO opened on November 07 and the company targets raising Rs 2,200 crore. The IPO will be closed on November 11 and the price band is between Rs 70 – 74 per equity share. The share allotment will likely be finalised on November 12. The listing on NSE and BSE is expected to be on November 14. An individual retail buyer can apply for a minimum of 200 shares which costs Rs 14,800 and then in multiples of 200 shares.
ICICI Securities, Morgan Stanley India Company, Kotak Mahindra Capital Company, Axis Capital, HDFC Bank, and Motilal Oswal Investment Advisors are the book-running lead managers of the IPO. Kfin Technologies is the registrar for the issue.
Niva Bupa Health Insurance IPO 2024 Highlights: Date Time IPO Listing GMP Review
At present two firms are holding stake in Niva Bupa Health Insurance firm-one is Bupa Singapore Holdings Pte which owns a 62.19 per cent stake and another one is Fettle Tone LLP which has 26.8 per cent stake of the insurance firm.
Subscription period for Niva Bupa Health Insurance IPO is till November 11, 2024
Final date for allotment: November 12, 2024
Share credit transferred to the Demat Account: November 13, 2024
Listing date: November 14, 2024.
According to Rajan Shinde, Research Analyst, Mehta Equities Ltd, ''By looking at the financials, the company has shown substantial growth, with AUM and net premium earned increasing by 62.2% and 43.1%, respectively, in FY 2024, alongside a remarkable profit surge from Rs.12.25 cr in FY 2023 to Rs.81.85 cr in FY 2024 (a 552.7% increase). On valuation parse at the upper price band Rs.74/-, the issue is asking a Market Cap of Rs.13520 cr and based on FY 2025e annualised earnings and fully diluted post IPO paid-up capital, the company is asking for a PB of 4.77x which appears fully priced compare to its industry average ~4x. Investors should also look at IPO offers which come with nearly 64% OFS i.e Rs. 1400/- cr with total issue of Rs.2200 cr which is an area of concern for new investors. ''
The IPO had been subscribed 1.17 times. Among investor categories, qualified institutional buyers (QIBs) were leading with a subscription rate of 1.5 times, whereas retail investors followed with a 1.34 times subscription. However, non-institutional investors showed little interest, with a subscription rate of only 0.4 times, as per data collected by 5:00 om on Friday.
The IPO, priced between Rs 70 and Rs 74 per share, is set to close on November 11. This Rs 2,200-crore offering includes a fresh issuance of equity shares worth Rs 800 crore, alongside an offer for sale (OFS) of up to Rs 1,400 crore by the company’s promoters. In the beginning, the company aimed to raise Rs 3,000 crore but later reduced the issue size.
The Niva Bupa Health Insurance company plans to use the total amount from the proceeds for enhancing its capacity base, to make stronger the solvency levels and some part of the amount will used for common corporate basis.
The Niva Bupa Health Insurance company plans to use the total amount from the proceeds for enhancing its capacity base, to make stronger the solvency levels and some part of the amount will used for common corporate basis.
The Niva Bupa Health Insurance Company Limited initial public offer recorded 1.17 times subscribed on second day of share sale on Friday. The initial share sale received 20,26,82,400 shares against 17,28,57,143 shares. According to NSE data, the initial share received bids of 20,26,82,400 shares against 17,28,57,143 shares on offer.
As of November 8, 2024 (Day 2), the Niva Bupa Health Insurance IPO was subscribed 1.24 times overall. The retail investor category saw a subscription rate of 1.43 times, with Qualified Institutional Buyers (QIB) subscribing 1.59 times, while the Non-Institutional Investor (NII) segment lagged at 0.42 times. Within NII, bids above ₹10 lakh (bNII) reached 0.52 times, while those below ₹10 lakh (sNII) were at 0.23 times. A total of 20.3 crore shares were bid against an offer of 16.35 crore shares, with applications totaling 184,131, amounting to 1.17 times the application rate.
As of March 28, 2024, a comparison of Niva Bupa Health Insurance with peers in the insurance sector highlights differences in earnings and financial metrics. Niva Bupa reports an EPS of 0.51 (basic) and 0.5 (diluted) with a NAV per share of Rs 12.06, but lacks a P/E ratio. In contrast, Star Health posts a diluted EPS of 14.19 and a high P/E of 36.97, with a strong RoNW of 14.35% and P/BV of 5.03. ICICI Lombard leads in EPS at 38.78, with a high P/E of 45.92. New India Assurance shows a moderate EPS of 6.77.
Capital Market (CapitalMarket.com) has given the Niva Bupa Health Insurance IPO a rating of 43, reflecting a cautious stance. Their recommendation is "Avoid," signaling potential concerns about immediate returns or the market conditions surrounding the offering. However, Capital Market notes that active risk-takers may still consider the IPO if they are comfortable with the associated risks. This rating suggests that while there may be growth potential, conservative investors might prefer waiting for more stable opportunities.
The Niva Bupa Health Insurance IPO has garnered a range of responses from brokers and analysts. Recommendations include “Apply” from Bajaj Capital Ltd, BP Equities, Canara Bank Securities Ltd, Mehta Equities, and Ventura Securities, indicating confidence in its potential. “May Apply” reviews came from Dilip Davda and Swastika Investmart Ltd, showing cautious optimism. Capital Market issued a “Neutral” stance, suggesting a wait-and-see approach, while Axis Capital has chosen not to rate the IPO. This range of feedback reflects a generally positive outlook with some reservations, advising investors to weigh growth potential alongside market conditions and individual risk tolerance.
The Niva Bupa Health Insurance IPO has garnered a mostly positive response from brokers and analysts. Out of nine reviews, 55.56% recommend an "Apply" rating, indicating favorable prospects for investors. "May Apply" was assigned by 22.22% of analysts, reflecting a cautiously optimistic outlook. A single broker rated it "Neutral" (11.11%), suggesting a balanced perspective, while none recommended avoiding the IPO. One analyst (11.11%) chose "Not Rated," indicating no explicit stance. Overall, the IPO has been viewed positively, with many analysts suggesting it could be a solid investment opportunity, depending on individual risk tolerance and investment strategy.
Several prominent firms have shared their views on the Niva Bupa Health Insurance IPO. Bajaj Capital Ltd, BP Equities (BP Wealth), Canara Bank Securities Ltd, Mehta Equities, and Ventura Securities Ltd have all given an "Apply" recommendation, suggesting investors consider subscribing to the IPO. Dilip Davda and Swastika Investmart Ltd have offered a more cautious "May Apply" suggestion. Capital Market holds a "Neutral" view, indicating uncertainty regarding the IPO's potential. Meanwhile, Axis Capital has refrained from rating the IPO, providing no recommendation at this stage. Investors are advised to carefully evaluate these insights before making decisions.
To check the Niva Bupa Health Insurance IPO allotment status, follow these steps:
Click the allotment status check button provided by your broker or the registrar’s website.
Select "Niva Bupa Health Insurance" as the company name.
Enter your PAN number, application number, or DP Client ID (any one).
Click on "Search."
If shares are allotted, they will be credited directly to your Demat account. Checking the allotment status is a quick way for investors to confirm if they've received shares before they’re listed on the stock exchange.
The allotment status for Niva Bupa Health Insurance's IPO is anticipated to be available on November 12, 2024. Investors who applied for shares can check their allotment status on the official IPO registrar website or through the broker platforms used during the application process.
The shareholding pattern of the company before and after the issue shows a shift in ownership distribution. Prior to the issue, the promoters and promoter group held 89.1 per cent of the company's shares, while the public, including selling shareholders, owned 10.9 per cent. After the issue, the promoters and promoter group’s shareholding decreased to 73.4 per cent, while the public's stake increased to 26.6 per cent, reflecting the dilution of the promoters' ownership due to the new issuance of shares.
The Niva Bupa Health Insurance IPO is scheduled to open on November 7, 2024, and close on November 11, 2024. The basis of allotment will be finalized by Tuesday, November 12, 2024, with refunds initiated and shares credited to Demat accounts on Wednesday, November 13, 2024. The listing date for the IPO is set for Thursday, November 14, 2024. Investors must ensure that the UPI mandate confirmation is completed by the cut-off time of 5 PM on November 11, 2024.
Bajaj Capital , BP Equities (BP Wealth), Canara Bank Securities, Mehta Equities and Ventura Securities have given "Apply" recommendation to Niva Bupa Health Insurance IPO. Dilip Davda and Swastika Investmart have given "May Apply" recommendation to Niva Bupa Health Insurance IPO. Capital Market has "Neutral" view about the IPO. Axis Capital has "Not Rated" the IPO.
Niva Bupa Health Insurance IPO was fully subscribed, at 1.07 times. The retail investors' shares were subscribed 1.37 times. The Qualified Institutional Buyers category was subscribed 1.31 times and Non-Institutional Investors category was subscribed 0.40 times.
Niva Bupa Health Insurance IPO 2024 Live: Issue gets fully subscribed
Niva Bupa Health Insurance IPo was fully subscribed on Day 2. The retail segment was subscribed 1.36 times while the NII category was booked 0.40 times. The QIBs subscribed the issue 1.31 times.
Niva Bupa Health Insurance IPO 2024 Live: Parents' holding in Niva Bupa
Currently, Bupa Singapore Holdings Pte holds a 62.2% stake in the insurance company, while Fettle Tone LLP owns 26.8%. Niva Bupa leverages Bupa’s extensive global healthcare expertise, which serves 50 million customers worldwide.
Niva Bupa Health Insurance IPO 2024 Live: Fastest growing standalone health insurer, says RedSeer
NBHICL is one of India's largest and fastest-growing standalone health insurers (SAHIs) based on an overall health gross direct premium income (GDPI) of Rs 5,494.43 crore in Fiscal 2024, according to a report by RedSeer. From Fiscal 2022 to Fiscal 2024, the company's overall gross written premium (GWP) grew at a compound annual growth rate (CAGR) of 41.27%, while its GWP from retail health grew at a CAGR of 33.41%. Additionally, from the three months ended June 30, 2023, to the three months ended June 30, 2024, the overall GWP grew by 30.84%, and the GWP from retail health increased by 31.99%.
Niva Bupa Health Insurance IPO 2024 Live: Subscription status
Niva Bupa Health Insurance's issue was booked 89% as of Day 02 i.e. November 08. Retail investors subscribed the IPO fully, 1.24 times. The NIIs subscribed the IPO of Niva Bupa 0.39 times and QIBs booked the issue 1.03 times.
Niva Bupa Health Insurance IPO 2024 Live: Niva Bupa's Business
Niva Bupa Health Insurance IPO 2024 Live: About Niva Bupa Health Insurance
Niva Bupa Health Insurance Company is a prominent health insurance provider in India. As of Q1 FY25, the company insured 14.99 million active lives. With a strategic emphasis on the retail health market, their Gross Written Premium (GWP) from retail health products accounted for 67.65% and 68.47% of their total GWP for Q1 FY25, and for Fiscal 2024, respectively. They offer a diverse range of products for customers, strengthened by a strong track record in product innovation. Their health insurance offerings are designed to meet the needs of customers at every stage of life.
Niva Bupa Health Insurance IPO 2024 Live: Niva Bupa Health Insurance’s IPO subscription status
Niva Bupa Health Insurance’s IPO received 71% subscription by 11:12 am on the second day of bidding on Friday, following a 65% subscription rate on the opening day. As of Friday morning, the IPO attracted bids for 12.18 crore shares against the 17.28 crore shares on offer, according to NSE data.
Niva Bupa Health Insurance IPO 2024 Live: Niva Bupa subscription status
Niva Bupa Health Insurance IPO was subscribed 69% as of November 07, 2024. The company received bids worth Rs 831.28 crore. Retail investors booked the issue 0.76 times. The NIIs subscribed to the IPO 0.35 times. While the QIBs subscribed the issue most with 83% subscription.
Niva Bupa Health Insurance IPO 2024 Live: Niva Bupa GMP update
Shares of Niva Bupa were neither fetching a premium nor a discount in the grey market, which indicates a muted listing on the bourses. The grey market is an unofficial place to trade shares ahead of listing.