Niva Bupa Share Price Highlights: Niva Bupa lists at Rs 78.14, premium of 5.5% on NSE

Shares of Niva Bupa Health Insurance fell 2% to Rs 76.58 after listing at a premium of 5.5% on the NSE. The stock was listed at Rs 78.14 on November 14 on the NSE.

The company proposes to utilise the raised proceeds towards the augmentation of its capital base to strengthen solvency levels and general corporate purposes.

Shares of Niva Bupa Health Insurance are listed at Rs 78.14 on the National Stock Exchange, a premium of 5.5%. The grey market suggested muted listing gains.

“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.

“At the upper price band of Rs 74, the health insurer will be trading at a post-issue adjusted 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.

ICICI Securities, Morgan Stanley India Company, Kotak Mahindra Capital Company, Axis Capital, HDFC Bank, and Motilal Oswal Investment Advisors are the lead book managers of the issue.

Shares of Niva Bupa were attracting a premium of 1.35% in the grey market, indicating muted listing gains. The grey market is an unofficial place to trade shares ahead of listing.

Kfin Technologies is serving as the registrar for the Niva Bupa IPO, with ICICI Securities, Morgan Stanley India Company, Kotak Mahindra Capital Company, Axis Capital, HDFC Bank, and Motilal Oswal Investment Advisors acting as the book-running lead managers.

The issue garnered bids for 31.13 crore shares compared to the 17.28 crore shares on offer, resulting in a total subscription of 1.80 times. Demand was driven primarily by retail investors, who subscribed 2.73 times their allotted quota. The portion allocated to qualified institutional buyers (QIBs) was subscribed 2.06 times, while the non-institutional investors (NIIs) segment saw a 68% subscription rate.

Investors who participated in the company’s inaugural share sale can check their allotment status on the official website of the registrar, KFin Technologies, using their application number or PAN details.

The Niva Bupa IPO allotment status is also available on the BSE and NSE websites.

ICICI Securities, Morgan Stanley India, Kotak Mahindra Capital Company, Axis Capital, HDFC Bank, and Motilal Oswal Investment Advisors are the book-running lead managers for the issue.

After the Niva Bupa Health Insurance IPO allotment is fixed, the company will credit the shares into the demat accounts of eligible investors on November 13 and initiate refunds to unsuccessful bidders on the same day. To check Niva Bupa Health Insurance IPO allotment status online, investors can visit websites of BSE and NSE, and the official portal of IPO registrar. Kfin Technologies is the Niva Bupa IPO registrar.

According to IRDAI regulations, Niva Bupa intends to utilise the net proceeds from the fresh issue towards augmenting its capital base to maintain and strengthen solvency levels by investing in instruments and in the manner prescribed under the IRDAI (Actuarial, Finance and Investment Functions of Insurers) Regulations, 2024 (IRDAI AFIF Regulations).

Kfin Technologies is the registrar for Niva Bupa IPO, while 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.

Shares of Niva Bupa were neither fetching a premium nor a discount in the grey market, indicating muted listing gains. The grey market is an unofficial place to trade shares ahead of listing.

“Niva Bupa’s growth is impressive, the health insurance business is inherently complex, with profitability largely dependent on underwriting and effective cost management. Any misjudgement in claims frequency or medical costs could impact financial stability,” said Sujit Modi, Chief Investment Officer of Share.Market in an IPO note.

“The company aims to build a comprehensive, customer-focused health insurance platform and healthcare ecosystem, offering customers access to a variety of services, including wellness programs, doctor consultations, diagnostics, and medicine delivery. They plan to keep investing in developing and expanding their health insurance ecosystem through their own initiatives, like introducing more health assessment tools and wellness content, and by partnering strategically for services such as digital consultations and home medicine delivery. At the upper price band company is valued at a P/BV of 6.1X with a market cap of Rs 1,35,200 million post-issue of equity shares. We believe that the issue is fully priced and recommend a “Subscribe – Long Term” rating to the IPO,” said Anand Rathi Research in an IPO note.

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 issue.