Niva Bupa Health Insurance IPO: Here's What GMP Indicates Ahead Of Launch

The grey market premium trend of Niva Bupa Health Insurance IPO indicated a subdued response to the offer in the unlisted market. The GMP on Niva Bupa Health Insurance IPO, which is set to open on Nov. 7, was nil as of 09:26 a.m. on Nov. 6. According to InvestorGain, the company’s shares are likely to list at Rs 74, marking no listing gain.

The subscription window for Niva Bupa IPO will be open till Nov. 11.

Shares of Niva Bupa Health Insurance IPO are set to list on the BSE and NSE, on Thursday, Nov. 14.

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

Niva Bupa Health Insurance IPO price band has been fixed at Rs 70 to Rs 74 per share. Retail investors can apply for the public issue by placing bids for a minimum lot size of 200 shares totalling an investment of Rs 14,800.

Niva Bupa IPO aims to raise Rs 2,200 crore through its public issue, which consists of a fresh issue of 10.81 crore shares amounting to Rs 800 crore and an offer for sale of 18.92 crore shares worth Rs 1,400 crore.

Share allotment for the issue will be finalised on Tuesday, Nov. 12.

Niva Bupa Health Insurance has appointed Kfin Technologies Ltd. as registrar for the issue.

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

The company plans to use the funds raised through the public issue to enhance its capital base and improve its solvency levels. The proceeds will also be used for funding general corporate purposes.

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.