Niva Bupa Health Insurance IPO Highlights: Check latest GMP, subscription status, review and key details

Niva Bupa Health Insurance Co. Ltd. (NBHICL) has reported the following consolidated financial performance over the past three fiscal years: Gross Written Premium (GWP) and net profit/loss were Rs. 2809.97 crore / Rs. -196.53 crore in FY22, Rs. 4073.03 crore / Rs. 12.54 crore in FY23, and Rs. 5607.57 crore / Rs. 81.85 crore in FY24. For Q1 FY25, ending June 30, 2024, the company posted a loss of Rs. -18.82 crore on a GWP of Rs. 1464.18 crore. Insurance companies typically experience slower activity in the first half, with most business occurring in the second half of the fiscal year.

“By looking at the financials, Niva Bupa Health Insurance has shown substantial growth, with AUM and net premium earned increasing by 62.2% and 43.1%, respectively, in FY24, alongside a remarkable profit surge from Rs 12.25 crore in FY23 to Rs 81.85 crore in FY24 (a 552.7% increase). On valuation parse at the upper price band Rs 74, the issue is asking a market cap of Rs 13,520 crore and based on FY25 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,” said Rajan Shinde, Research Analyst at Mehta Equities.

“If we annualize FY25 earnings to the post-IPO fully diluted equity base, the asking price results in a negative price-to-earnings (P/E) ratio. Based on FY24 earnings, the P/E ratio stands at 642.22. Consequently, the issue appears to be aggressively priced,” said Bajaj Broking in an IPO note.

The Niva Bupa Health Insurance IPO offers a minimum lot size of 200 shares for retail investors, with bids allowed in multiples of 200 shares. The minimum investment for retail investors is Rs 14,800 for 200 shares, while the maximum investment is Rs 192,400 for 2,600 shares. For High Net-Worth Individuals (HNIs), the minimum lot size is 2,800 shares, requiring an investment of Rs 207,200, with a maximum of 13,400 shares or Rs 991,600. The B-HNI category has a minimum investment of Rs 1,006,400 for 13,600 shares, offering a tiered structure to cater to various investor categories.

As of November 8, Niva Bupa Health Insurance IPO’s grey market premium (GMP) is nil, indicating no premium above the issue price. The health insurer’s price band is set at Rs 74 per share, with the public issue expected to list at this price, according to data from Investorgain.com.

The Niva Bupa Health Insurance IPO, a book-built issue, aims to raise a total of ₹2,200 crore. This includes a fresh issue of 10.81 crore shares, generating Rs 800 crore, alongside an offer for sale of 18.92 crore shares, totaling R 1,400 crore.

Niva Bupa Health Insurance IPO raised ₹990.00 crore from anchor investors on November 6, 2024. A total of 13,37,83,783 shares were allocated to anchor investors. These investors are subject to a lock-in period, with 50% of the shares locked for 30 days, ending on December 12, 2024, and the remaining 50% locked for 90 days, which will end on February 10, 2025. This process ensures stability for the stock in the initial days following the listing.

The IPO opens for subscription on November 7, 2024, and closes on November 11, 2024, with shares expected to be allotted by November 12, 2024. Refunds will begin on November 13, and the shares will be credited to Demat accounts by the same date. The shares are set to list on November 14, 2024. Retail investors can apply for a minimum of 200 shares, with various investment limits for different investor categories.

The promoters of Niva Bupa Health Insurance IPO are Bupa Singapore Holdings Pte. Ltd. and Bupa Investments Overseas Limited. Pre-issue, their shareholding stands at 62.27%. Post-issue, their stake will likely decrease due to the public offering, although the exact post-issue holding is yet to be disclosed.

The Niva Bupa Health Insurance IPO offers a minimum lot size of 200 shares for retail investors, with bids allowed in multiples of 200 shares. The minimum investment for retail investors is ₹14,800 for 200 shares, while the maximum investment is ₹192,400 for 2,600 shares. For HNI (High Net-Worth Individuals), the minimum lot size is 2,800 shares, requiring an investment of ₹207,200, with a maximum of 13,400 shares or ₹991,600. The B-HNI category has a minimum investment of ₹1,006,400 for 13,600 shares. This tiered structure allows flexibility in bidding across different investor categories.

The Niva Bupa Health Insurance IPO offers a total of 29.72 crore shares, with specific reservations across investor categories. The largest allocation, at 45%, or 13.37 crore shares, is reserved for anchor investors. Qualified Institutional Buyers (QIB) have a 30% allocation, totaling 8.91 crore shares. Non-Institutional Investors (NII) are allotted 15% of the issue, or 4.45 crore shares, which is further split into two sub-categories: 10% for high-value applications over ₹10 lakh (2.97 crore shares, with a maximum of 10,617 allottees) and 5% for lower-value applications under ₹10 lakh (1.48 crore shares, with 5,308 allottees). Retail Individual Investors (RII) have a 10% allocation, totaling 2.97 crore shares, with up to 1,48,648 retail investors expected to participate. This structured reservation aims to balance demand across institutional, high-net-worth, and retail investors in the IPO.

The Niva Bupa Health Insurance IPO is scheduled to open on November 7, 2024, and close on November 11, 2024. Following the close, the basis of allotment will be determined on November 12, 2024. Refunds will be initiated the next day, November 13, alongside the crediting of shares to demat accounts. The IPO shares are then expected to be listed on stock exchanges on November 14, 2024. Investors using the UPI payment method must confirm their mandate by 5 PM on November 11 to secure their bids. This timeline outlines the key dates for those looking to participate in the IPO.

Niva Bupa Health Insurance is set to launch its Initial Public Offering (IPO) from November 7, 2024, to November 11, 2024. The company aims to raise a total of ₹2,200 crore through the issue of 297,297,297 shares, with a face value of ₹10 each. The price band for the IPO is set between ₹70 and ₹74 per share, and investors can apply in a minimum lot size of 200 shares.

The IPO consists of two components: a fresh issue of 108,108,108 shares, amounting to ₹800 crore, and an offer for sale (OFS) of 189,189,189 shares worth ₹1,400 crore. Post-issue, the total shareholding will increase from 1,700,122,985 to 1,808,231,093 shares. The shares will be listed on both BSE and NSE. This book-built issue IPO offers investors an opportunity to invest in one of India’s leading private health insurers.

ICICI Securities Limited, Morgan Stanley India Company Pvt Ltd, Kotak Mahindra Capital Company Limited, Axis Capital Limited, HDFC Bank Limited, and Motilal Oswal Investment Advisors Limited are serving as the book running lead managers for the Niva Bupa Health Insurance IPO. These reputed financial institutions are responsible for managing the IPO process and ensuring its smooth execution. Kfin Technologies Limited has been appointed as the registrar for the issue, handling the allotment and refund processes. Their collective expertise aims to offer a seamless experience for investors, while helping Niva Bupa raise capital to expand its operations in India’s growing health insurance sector.

The Niva Bupa Health Insurance IPO has a price band set between Rs 70 and Rs 74 per share. Retail investors can participate with a minimum lot size of 200 shares, requiring a minimum investment of Rs 14,800. For small non-institutional investors (sNII), the minimum application size is 14 lots (2,800 shares), translating to an investment of Rs 207,200. For large non-institutional investors (bNII), the minimum is 68 lots (13,600 shares), requiring Rs 1,006,400. This tiered investment structure provides options for various investor categories, offering an opportunity to support Niva Bupa’s expansion within the growing health insurance sector in India.

The Niva Bupa Health Insurance IPO opens for subscription on November 7, 2024, and will close on November 11, 2024. Investors eagerly await the allotment, which is expected to be finalized on Tuesday, November 12, 2024. The IPO is set to list on both BSE and NSE, with a tentative listing date of Thursday, November 14, 2024. This IPO presents an opportunity for investors to participate in the expanding health insurance sector. Niva Bupa, a prominent player in the industry, aims to leverage the funds to drive growth and strengthen its market position amidst increasing demand for health insurance in India.

Niva Bupa Health Insurance has launched its Initial Public Offering (IPO) as a book-built issue, aiming to raise Rs 2,200 crore. The IPO consists of a fresh issue of 10.81 crore shares, which will raise approximately Rs 800 crore, alongside an offer for sale (OFS) of 18.92 crore shares, valued at Rs 1,400 crore. The proceeds from the fresh issue are expected to support the company’s growth plans and strengthen its financial position. This IPO offers investors an opportunity to invest in one of India’s leading private health insurers, known for its robust presence in the growing healthcare sector.

The Niva Bupa Health Insurance IPO is scheduled to open on Thursday, November 7, 2024, and close on Monday, November 11, 2024. Investors need to confirm their UPI mandates by 5 PM on November 11, 2024. The basis of allotment will be finalized on Tuesday, November 12, 2024, followed by the initiation of refunds and credit of shares to Demat accounts on Wednesday, November 13, 2024. The IPO shares are expected to be listed on the stock exchange on Thursday, November 14, 2024.

Regarding financial performance, over the past three fiscal years, Niva Bupa Health Insurance Co. Ltd. (NBHICL) has reported the following consolidated figures: a gross written premium (GWP) / net profit (loss) of Rs. 2809.97 crore / Rs. -196.53 crore (FY22), Rs. 4073.03 crore / Rs.12.54 crore (FY23), and Rs. 5607.57 crore / Rs. 81.85 crore (FY24). For Q1 of FY25 ending on June 30, 2024, the company recorded a loss of Rs. -18.82 crore on a GWP of Rs. 1464.18 crore. Historically, insurance companies experience a sluggish first half with most activities occurring in the second half of the fiscal year.

The Niva Bupa Health Insurance IPO has raised Rs 990.00 crore from anchor investors, with the anchor bidding date set for November 6, 2024. A total of 133,783,783 shares are being offered in the anchor portion, which amounts to Rs 990.00 crore. The lock-in period for 50% of the shares will end after 30 days, on December 12, 2024, while the remaining shares will be subject to a lock-in period of 90 days, with the end date being February 10, 2025.

The price band for the Niva Bupa Health Insurance IPO is set between Rs 70 and Rs 74 per share. The minimum lot size for retail investors is 200 shares, requiring a minimum investment of Rs 14,800. For sNII (Small and Non-Institutional Investors), the minimum investment is 14 lots (2,800 shares), totaling Rs 207,200. For bNII (Big and Non-Institutional Investors), the minimum investment is 68 lots (13,600 shares), amounting to Rs 1,006,400.

The Niva Bupa Health Insurance IPO is a book-built issue offering totaling Rs 2,200.00 crores. It consists of a fresh issue of 10.81 crore shares, raising Rs 800.00 crores, and an offer for sale of 18.92 crore shares, amounting to Rs 1,400.00 crores.

“Over the last three fiscal years, NBHICL has reported an average earnings per share (EPS) of Rs. 0.05 (basic) and an average return on net worth (RoNW) of -2.58%. The issue is priced at a price-to-book value (P/BV) of 6.19 based on its net asset value (NAV) of Rs. 11.95 as of June 30, 2024, and a P/BV of 4.73 based on its post-IPO NAV of Rs. 15.66 per share (at the upper cap). If we annualize FY25 earnings to the post-IPO fully diluted equity base, the asking price results in a negative price-to-earnings (P/E) ratio. Based on FY24 earnings, the P/E ratio stands at 642.22. Consequently, the issue appears to be aggressively priced,” said Bajaj Broking in an IPO note.

The price band for Niva Bupa Health Insurance IPO is set at Rs 371 – 390 per share. Retail investors can apply for a minimum lot size of 200 shares for a minimum investment of Rs 14,800.

“On valuation parse at the upper price band Rs.74/-, the issue is asking a Market Cap of Rs 13,520 crore and based on FY25 estimated 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 crore with total issue of Rs 2,200 crore which is an area of concern for new investors. Being its association with the Bupa Group, accessing global expertise in healthcare innovation and customer service. With a CAGR of 41.27% in GWP from Fiscal 2022-2024, Niva Bupa is strategically positioned to capitalize on India‘s growing health insurance market. Hence, by looking at all the attributes we recommend investors to “Susbcribe” the IPO for long term perspective only,” said Rajan Shinde, Research Analyst at Mehta Equities.

“At the upper price band of Rs 74, NBHICL will be trading at a post-issue adj. P/B ratio of 4.8x for Q1FY25, which seems reasonable compared to its listed peers. Considering its strong parentage, improving market share, and profitability, we assign a “Subscribe” rating for long-term investment,” said Geojit Financial Services in an IPO note.