Niva Bupa Health Insurance IPO Subscribed 1.8 Times On Final Day — Check GMP

The initial public offering of Niva Bupa Health Insurance Co. has been subscribed 1.8 times on the third day of bidding, led by demand from retail investors. The issue was subscribed 1.17 times on the second day and 0.65 times on the first day on Thursday.

The grey market premium of Niva Bupa IPO was nil as of 3 p.m., implying no gain over the issue price, according to 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 2024. However, it posted a loss of Rs 19 crore in the June quarter.

The IPO was subscribed 1.8 times as of 6:00 p.m. on Monday.

• Qualified institutional buyers: 2.06 times.

• Non-institutional investors: 0.68 times.

• Retail investors: 2.73 times.

The grey market premium of Niva Bupa IPO was nil as of 3 p.m., implying no gain over the issue price, according to 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.