Niva Bupa Health Insurance IPO Opens on November 7 with ₹2,200 Crore Offering

The Niva Bupa Health Insurance IPO will open for subscriptions on November 7, 2024, and close on November 11, 2024. The share allocation is expected to be finalised by November 12, 2024. The shares will be listed on the BSE and NSE on November 14, 2024. The IPO is a ₹2,200 crore book-built offering, which includes a sale of 18.92 crore shares worth ₹1,400 crore and a fresh issue of 10.81 crore shares worth ₹800 crore.

Application Details

The price band for the IPO is ₹70 to ₹74 per share. The minimum lot size is 200 shares, requiring an investment of ₹14,800 for retail investors. For big NII investors, the minimum lot size is 68 lots (13,600 shares), or ₹1,006,400, while for small NII, it’s 14 lots (2,800 shares), or ₹207,200.

Use of IPO Proceeds

The proceeds from the IPO will be used to strengthen the company’s capital base, improve solvency levels, and for general corporate purposes.

About Niva Bupa Health Insurance

Founded in 2008, Niva Bupa Health Insurance is a joint venture between Fettle Tone LLP and the Bupa Group. The company provides comprehensive health insurance services, with a focus on customer access to a wide range of health services through its website and mobile app.

Financial Performance

In FY24, Niva Bupa Health Insurance saw a significant increase in revenue, rising 44.05% compared to FY23. Its net profit surged by 552.73% in the same period.

Key Risks

The company’s profitability depends on managing underwriting risks and accurately pricing its products. If medical expenses or claims frequency are not accurately estimated, it could negatively impact the business.

Promoter Holding

The promoter of Niva Bupa Health Insurance is Bupa Singapore Holdings Pte. Ltd and Bupa Investments Overseas Limited.

Lead Managers and Registrar

The book-running lead managers for the IPO are ICICI Securities, Morgan Stanley, Kotak Mahindra Capital, Axis Capital, HDFC Bank, and Motilal Oswal Investment Advisors. The registrar for the issue is Kfin Technologies.

Grey Market Premium (GMP)

As of Monday, the Niva Bupa Health Insurance IPO GMP is Nil, meaning the shares are being traded at the issue price without any additional premium.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.