The Initial Public Offering (IPO) for Niva Bupa Health Insurance Company Limited, formerly known as Max Bupa Health Insurance Company, is now open for subscription. The IPO began on Thursday, November 7, 2024, and is set to close on Monday, November 11, 2024. This IPO is an exciting opportunity for investors looking to buy shares in a well-established company in India’s growing health insurance sector.
Niva Bupa IPO Price and Details
The price range for the Niva Bupa IPO has been fixed between ₹70 and ₹74 per share. This means that investors can buy shares in the company at this price range during the subscription period. The lot size for the IPO is 200 equity shares, and they can be purchased in multiples of 200 shares. The company is looking to raise ₹2,200 crore through this IPO.
Out of this total amount, ₹800 crore will come from fresh equity shares being issued, while the remaining ₹1,400 crore will come from an offer for sale by the promoters. Initially, the company had planned to raise ₹3,000 crore but later reduced the issue size to ₹2,200 crore.
IPO Subscription Status
On the first day of the subscription process, the IPO has seen a relatively slow response. As of Thursday afternoon, around 8% of the issue has been subscribed. In more detail:
- Retail Investors: 41% of the shares allocated for retail investors (individual investors like you and me) have been subscribed.
- Non-Institutional Investors (NII): Only 2% of the shares for this category have been subscribed.
- Qualified Institutional Buyers (QIB): Have not placed any bids for the IPO yet, according to the data available on the NSE.
This initial response shows that there is some interest from retail investors, but the overall subscription level is still low, especially among institutional investors. The market is watching closely to see how the subscription rate progresses in the coming days.
The Grey Market Premium (GMP) plays an important role for IPO investors to consider. The GMP indicates the premium at which shares are being traded in the grey market before they officially list on the stock exchange. For Niva Bupa, the current GMP stands at ₹0. This means that shares are trading at their issue price of ₹74, with no premium or discount.
A GMP of ₹0 indicates that investors are not inclined to pay a premium for the shares in the grey market. This could indicate that there is less enthusiasm for the IPO, at least for now.
The Niva Bupa IPO has opened with a muted response on the first day. The company is a trusted name in health insurance, but the slow subscription and zero GMP raise questions about its attractiveness to investors. If you are considering subscribing, it’s important to weigh the company’s strong market presence against the current market conditions and its valuation. It’s important to conduct detailed research and seek advice from a financial advisor before making any investment decisions.
Stay updated and keep track of the IPO’s progress before deciding whether to participate in this public offering.
