Niva Bupa Health Insurance IPO: GMP Subdued Ahead Of Opening

The grey market premium trend for Niva Bupa Health Insurance's initial public offering, which opens on Thursday, suggests a lukewarm response in the unlisted market. As of 05:03 a.m., the GMP was nil, indicating no expected listing gain. According to InvestorGain, the company's shares are expected to list at Rs 74, with no significant price movement anticipated.

Notably, GMP is not an official price quote for the stock and is based on speculation.

Niva Bupa Health Insurance's IPO has a price band set between Rs 70 and Rs 74 per share. Retail investors can participate in the offering by bidding for a minimum lot of 200 shares, which requires an investment of Rs 14,800.

The company aims to raise Rs 2,200 crore through this IPO, which includes a fresh issue of 10.81 crore shares worth Rs 800 crore and an offer for sale of 18.92 crore shares valued at Rs 1,400 crore.

The subscription window will remain open until Nov. 11, with shares slated to list on the Bombay Stock Exchange and National Stock Exchange on Nov. 14.

The funds raised from the IPO will be used to strengthen the company's capital base and improve solvency levels.

Incorporated in 2008, Niva Bupa Health Insurance Co. is a joint venture between the Bupa Group and Fettle Tone LLP—a special purpose vehicle of True North Fund VI LLP.

According to its website, the health insurance company has a network of more than 10,000 hospitals and has settled about 91.6% of the claims.

Formerly known as Max Bupa Health Insurance Co., it became India's third-largest retail health insurer with over Rs 4,000 crore collected in written premiums in fiscal 2023.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.