Niva Bupa Health Insurance IPO Subscribed 14% So Far On Day 1—Check GMP

The initial public offering of Niva Bupa Health Insurance Co. has been subscribed 0.14 times so far on its first day of bidding on Thursday.

The grey market premium of Niva Bupa was nil as of 11:02 a.m., implying no gains over the IPO price, according to Chittorgarh's unit InvestorGain. The estimated listing price based on the GMP is Rs 74 per share.

The company has set a price band of Rs 70–74 per share for its Rs 2,200-crore initial public offering.

The IPO consists of a fresh issue of shares worth Rs 800 crore and an offer for sale of up to Rs 1,400 crore, according to the red herring prospectus filed with the Securities and Exchange Board of India.

The issue size set for the IPO is lower than the Rs 3,000-crore it filed in its draft red herring prospectus. The IPO size was trimmed when the largest selling shareholder—True North—decided to eventually downsize how much they were selling, according to Chief Executive Officer Krishnan Ramachandran.

Under the OFS, promoter Bupa Singapore Holdings Pte. will offload shares worth Rs 350 crore, while Fettle Tone LLP will sell stake to the tune of Rs 1,050 crore.

• Issue opening date: Nov. 7

• Issue closing date: Nov. 11

• Issue price: Rs 70–74 per share

• Fresh issue size: Rs 800 crore

• OFS size: Rs 1,400 crore

• Total issue size: Rs 2,200 crore

• Market value at the upper end of price band: Rs 13,520 crore

• Lot size: 200 shares

• Allotment: About 75% of the issue size has been reserved for qualified institutional buyers, 15% for non-institutional buyers and the remaining 10% for retail investors.

Proceeds from the issue will be used to augment the company's capital base to strengthen solvency levels.

Niva Bupa's total income in the quarter ended June 2024 stood at Rs 1,125 crore, higher than Rs 806 crore in the same period last year. In the fiscal ended March 31, 2024, it reported a revenue of Rs 2,049 crore, which was more than double from Rs 831 crore in the year-ago period.

The company's profit rose from Rs 12 crore in fiscal 2023 to Rs 82 crore in fiscal 2023–24. However, it posted a loss of Rs 19 crore in the June quarter.

The IPO was subscribed 0.14 times or 14% as of 01:48 p.m. on Thursday.

• Qualified institutional buyers: 0.07 or 7%.

• Non-institutional investors: 0.03 times or 3%.

• Retail investors: 0.52 times.

The grey market premium of Niva Bupa was Rs 0 as of 11:02 a.m., implying no gains over the IPO price, according to Chittorgarh's unit InvestorGain. The estimated listing price based on the GMP is Rs 74 per share.

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

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