The Initial Public Offering (IPO) for Niva Bupa Health Insurance Company Limited has been creating a lot of buzz in the market. The IPO, which opened for subscription on Thursday, November 7, 2024, is expected to close on Monday, November 11, 2024. This IPO aims to raise funds to help the company expand its business and improve its services in the health insurance sector.
Key Details of Niva Bupa IPO
- Price Band: ₹70 to ₹74 per share
- Issue Size: ₹2,200 crore
- Offer Period: November 7 to November 11, 2024
- Lot Size: 200 shares per lot, and in multiples of 200 thereafter
The Niva Bupa IPO has already raised ₹990 crore from anchor investors ahead of its public launch, which shows strong interest from institutional investors.
Breakdown of the IPO:
- Qualified Institutional Buyers (QIBs): 75% of the issue size is reserved for QIBs.
- Non-Institutional Investors (NII): 15% of the issue size is for NII.
- Retail Investors: 10% of the issue size is reserved for individual retail investors.
The company aims to offer a wide range of health insurance services that help people manage their healthcare needs. With an established brand reputation, Niva Bupa is focused on providing health insurance solutions to individuals, families, and businesses.
Subscription Status
As of the second day of bidding (Friday, November 8, 2024), the Niva Bupa IPO has been subscribed by 84%. The retail portion, which is reserved for individual investors, has been oversubscribed by 1.12 times. This indicates strong demand from retail investors, which is a positive sign for the company.
Here’s a breakdown of the subscription so far:
- Retail Investors: 1.12 times oversubscribed
- Non-Institutional Investors (NII): 36% subscribed
- Qualified Institutional Buyers (QIBs): 98% subscribed
On the first day of bidding, the IPO was subscribed 65%. The retail portion was booked 71%, while the NII portion had 33% subscription. The QIB portion was 79% subscribed.
The grey market premium (GMP) is a key indicator for investors, showing the price at which shares are being traded in the unofficial market before the listing. For Niva Bupa IPO, the GMP has been fluctuating, initially reported around ₹20-25 per share. However, by the second day, it had dropped to ₹0, meaning that shares were trading at the issue price of ₹74 with no premium or discount.
The Niva Bupa IPO presents a chance for investors to participate in the expanding health insurance market in India. However, it is important to do thorough research or consult a financial advisor before making an investment decision. With strong brand reputation, solid financial performance, and a growing market, Niva Bupa has the potential to offer good returns in the long run. But like all investments, there are risks involved, so it is always wise to make an informed choice.
