Join us for the highlights from the listing ceremony of Niva Bupa Health Insurance Company Limited at our Exchange @NSEIndia. #NSEIndia #listing #IPO #StockMarket #ShareMarket #NivaBupaHealthInsuranceCompanyLimited @ashishchauhan pic.twitter.com/6ptQ6rskZP
— NSE India (@NSEIndia) November 14, 2024
The shares of Niva Bupa Health Insurance Company debuted on the National Stock Exchange (NSE) on Thursday, November 14, opening at ₹78.14 per share. This represented a 5.5% increase over the offering price of ₹74 per share. Nevertheless, by the end of the trading session, the stock closed down 5.3% from its initial price.
With a total IPO size of ₹2,200 crore, this comprised a fresh issue of ₹800 crore alongside an offer for sale amounting to ₹1,400 crore. The public offering witnessed significant interest, with the price range established at ₹70-₹74 per share, leading to bids for over 31 crore shares against the 17 crore shares available.
Congratulations to Niva Bupa Health Insurance Company Limited on its listing on NSE today. This company is formed through a partnership between the Bupa Group and Fettle Tone LLP, specializing in health-insurance services. The public offer totaled ~INR 2,200.00… pic.twitter.com/LBkyPqcSlN
— NSE India (@NSEIndia) November 14, 2024
Ultimately, the subscription rate reached 1.80 times. At 3:35 PM, Niva Bupa’s shares traded at ₹75.55, reflecting a decline of 3.31% from the issue price, having touched a low of ₹73.51 during the trading day.
#ETNOWExclusive | Following a solid debut for Niva Bupa, @anuragshah_ discusses growth prospects with Bupa Global Chairman Roger Davis.
Davis emphasizes Bupa’s optimistic long-term view on India’s market. Don’t miss these insights! @Bupa @Niva_Bupa #NSE #NivaBupa pic.twitter.com/g4AkOkbSXF
— ET NOW (@ETNOWlive) November 14, 2024
The trading session saw a volume of 339.92 lakh shares transacted, totaling a value of ₹260.45 crore, resulting in a market capitalization of ₹13,764.82 crore. The IPO endeavor was spearheaded by Krishnan Ramachandran, the Managing Director and Chief Executive Officer.
#WATCH | Niva Bupa’s Krishnan Ramachandran discusses the company’s listing, the stake held by Bupa, and the implications of IRDAI’s support for 100% Foreign Direct Investment in insurance @Niva_Bupa @AyeshaFaridi1 @_sherylld #NSE pic.twitter.com/S7u2ydxCfd
— ET NOW (@ETNOWlive) November 14, 2024
Among the leading executives are Vishwanath Mahendra, Chief Financial Officer; Ankur Kharbanda, Chief Distribution Officer; and Dr. Bhabatosh Mishra, Director of Claims, Underwriting, and Product. Niva Bupa shares were concurrently listed on both the BSE and NSE.
Before the public offering, the company successfully secured ₹990 crore from anchor investors. The funds raised through the IPO will support expanding the capital base and covering general corporate purposes. The public offer received substantial interest, achieving a subscription of 1.80 times.
This level of interest underlines the confidence in Niva Bupa’s capacity for growth in the health-insurance industry.
Niva Bupa’s varied IPO performance
The stock performance of Niva Bupa Health Insurance saw a mixed reaction on the NSE, exhibiting a strong beginning but retreating as trading continued.
The IPO reception demonstrates a profound interest in the company, which intends to utilize the raised funds to enhance its capital structure and foster further expansion. Niva Bupa, formed through a collaboration between the Bupa Group and Fettle Tone LLP, provides a range of coverage and healthcare services across India. The IPO of ₹2,200 crore, with a price range set at ₹70-₹74 per share, saw a total of 31,136,280 equity shares bid, exceeding the 17,285,714 shares available.
This resulted in shares being oversubscribed by 1.80 times, driven largely by Retail Individual Investors (RIIs) at 2.73 times, Qualified Institutional Buyers (QIBs) at 2.06 times, and Non-Institutional Investors (NIIs) at 0.68 times, according to NSE statistics. Niva Bupa aims to employ the net proceeds from the IPO to reinforce its capital base and improve solvency ratios, among other corporate expenses.
The book-running lead managers for the IPO include Morgan Stanley India Company, ICICI Securities, Kotak Mahindra Capital Company, Axis Capital, HDFC Bank, and Motilal Oswal Investment Advisors. Share allotment for Niva Bupa Health Insurance’s ₹2,200 crore IPO is set for today and involves a fresh issuance of 10.81 crore shares, amounting to ₹800 crore, along with an offer for sale of 18.92 crore shares totaling ₹1,400 crore.
The IPO price range has been established between ₹70 and ₹74 per share, mandating a minimum lot size of 200 shares, which requires a minimum investment of ₹14,800 for retail participants. Investors may verify their allotment status on the registrar’s website or the BSE website using their PAN, application number, or Demat account details.
The grey market premium (GMP) for the Niva Bupa Health Insurance IPO was recorded at ₹0 on Tuesday. Factoring this into the upper price limit of ₹74 suggests a listing price of ₹74, reflecting a 0% premium. However, it’s important to remember that while GMPs may hint at market sentiment toward an IPO, they do not guarantee stock performance upon listing.
Niva Bupa Health Insurance stands as a significant entity in India’s health insurance arena, providing a diverse array of health insurance products and services tailored to meet different customer needs. The IPO marks a major step forward in the company’s growth trajectory.
