Niva Bupa shares climb 2% on positive outlook, stock expected to recover from recent lows

Shares of the health insurance firm Niva Bupa, which listed on the bourses last month, grew by over 2% on the back of positive outlook for the stock as per experts.

The stock opened at ₹77.5 per share on the NSE and achieved a high of ₹78.11 during the morning trade on Monday, December 23. The shares are currently trading 0.67% up at ₹76.78 apiece.

As per experts, the stock is expected to leverage the growing health insurance industry in India and will deliver a robust return on equity. The market capitalisation of the company stands at ₹13,949.35 crore as per NSE data.

Niva Bupa IPO and listing

Niva Bupa Health Insurance IPO was live from November 7 to November 11 and was oversubscribed, receiving an overall subscription of 1.8 times. The issue received bids for 31.13 crore shares, compared to the 17.28 crore shares on offer.

The demand for the IPO was led by retail investors, as the segment was subscribed 2.73 times. The QIBs segment received 2.06 times subscription and the NIIs category was booked 68%.

The ₹2,200 crore issue was a combination of a fresh issue worth ₹800 crore and an offer-for-sale component totalling ₹1,400 crore. The proceeds from the fresh issue are set to be utilised to widen the company's capital base as well as for general corporate purposes.

The stock was listed on the NSE at a 6% premium over its issue price of ₹74, at ₹78.14 apiece. The shares of the company have given stellar returns to the investors since the listing, rising by nearly 40% to approximately ₹109 per share in early December.

Niva Bupa financials

For the previous financial year (FY24), the company posted a net profit of ₹81.8 crore, marking a 554.4% increase from its ₹12.5 crore profit in FY23. Niva Bupa’s revenue from operations climbed to ₹5,607 crore in FY24 as compared to ₹4,073 crore reported in the previous fiscal.

In the first quarter of FY25, the company’s revenue stood at ₹1,461 crore and net loss at ₹18.8 crore. In the July-September quarter for the current fiscal, Niva Bupa’s profit after tax stood at ₹13.2 crore, a substantial growth from its net loss of ₹7.6 crore in the same quarter last year. The company’s total income rose by 37% to ₹1,359.74 crore in Q2 FY25 as compared to ₹991.99 crore in the year-ago period. As of September 30, Niva Bupa’s solvency ratio stood at 2.25, improving from 1.62 in the previous fiscal.

About Niva Bupa Health Insurance company

Niva Bupa is a leading health insurance company in India, offering several health insurance products and other healthcare solutions like diagnostics, annual health check-ups and digital consultations. Incorporated in 2008, the company provides both retail healthcare products for individuals and group offerings for employers.