Niva Bupa Health Insurance IPO subscribed 65% on the first day of subscription; check key details

Niva Bupa Health Insurance IPO saw a lukewarm response from investors on the first day of bidding on Thursday, November 7. The mainboard issue was subscribed 65% driven by retail investors.

According to NSE data, investors across categories applied for over 11.18 crore company shares, compared to 17.28 crore shares offered for subscription.

The retail portion of the IPO was subscribed 71% with bids for more than 2.21 crore shares compared to 3.14 crore shares reserved for the category. The Non-Institutional Investors (NII) applied for over 1.55 crore shares against 4.71 crore shares set aside for them. The NIIs booked their quota 33%.

The Qualified Institutional Buyers (QIBs) placed bids for 7.41 crore shares against the 9.42 crore shares set aside for them. The mainboard issue was booked 79% in the QIBs category. The ₹2,200-crore public offer is open for bidding from November 7 to November 11.

Niva Bupa Health IPO issue size, price band and other details

Niva Bupa Health IPO is a book-building offer comprising a fresh issuance of 10.81 crore shares, amounting to ₹800 crore, and an offer-for-sale (OFS) of 18.92 crore shares amounting to ₹1,400 crore. Niva Bupa Health IPO price band has been fixed at ₹70 to ₹74 per share.

The retail investors can apply for the Niva Bupa Health Insurance IPO by placing bids for a minimum of 200 shares, which aggregates to an investment of ₹14,800. The small NIIs can apply for a minimum of 14 lots, or 2,800 shares, aggregating to an investment of ₹2,07,200. Big NIIs can bid for 68 lots, or 13,600 shares, amounting to a minimum investment of ₹10,06,400.

Niva Bupa Health IPO dates

Niva Bupa Health IPO allotment status is likely to be finalised on Tuesday, November 12.

After the finalisation of the share allotment status, refunds will be initiated for unsuccessful bidders on Wednesday, November 13, and the successful bidders will also receive shares in their demat accounts the same day.

Niva Bupa Health IPO listing date has been tentatively fixed as November 14. Niva Bupa Health Insurance Company’s shares will be listed on the NSE and BSE.

Niva Bupa Health Insurance key financials

In Q1FY25, Niva Bupa Health Insurance posted a revenue of ₹1,124.9 crore. The health insurance provider posted a net loss of ₹18.82 crore in the June quarter of the current fiscal. The company’s net worth stood at ₹2,031.77 crore at the end of the June quarter of FY25.

The insurance firm’s revenue for FY24 grew by more than 44% to ₹4,118.63 crore compared to ₹2,859.24 crore in FY23. The company’s profit-after-tax for the fiscal ended March 31, 2024, increased over 552% to ₹81.85 crore compared to ₹12.54 crore in the preceding fiscal. The networth of the company grew by over 146% to ₹2,049.59 crore from ₹831.12 crore in the preceding financial year.

Niva Bupa Health IPO registrar and promoters

The registrar for Niva Bupa Health IPO is Kfin Technologies Limited. The book running lead managers for the public issue include: 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.

The promoters of Niva Bupa Health Insurance Company include Bupa Singapore Holdings Pte. Limited, and Bupa Investments Overseas Limited. The promoters of the company held 62.27% stake in the company before the public issue.

Niva Bupa Health Insurance IPO Objective

The company plans to use the money raised via the public issue for augmentation of its capital base to strengthen solvency levels and for general corporate purposes.

About Niva Bupa Health Insurance Company Limited

Niva Bupa Health Insurance Company Limited was incorporated in 2008 as a joint venture between the Bupa Group and Fettle Tone LLP. The company provides health insurance to individuals and families through its retail products and to employers and employees through its group products.