Niva Bupa: The share’s issue price was Rs. 74, so the list price of Rs. 78.14 is considered 5.5 percent over the premium. Niva Bupa shares are also listed at Rs. 78.5, more than 6.08% over the IPO price. The IPO opened at Rs. 2,200 crores, with shares priced between Rs. 70 and Rs. 74. The three days of bidding closed on November 11 and managed to secure 1.9 times bids. Nearly 31 crore shares and 16 crore offer-of-sale shares participated in the bid, with retail investors booking 2.88 times and NIIs 0.71 times.
About Niva Bupa
Niva Bupa is a healthcare insurance company established in 2008. The joint venture partnership between Bupa Group and Fettletone LLP specializes in offering health insurance. It ensures customers can access various healthcare services on the Niva Bupa website and mobile applications.
The IPO
Niva Bupa’s revenue rose by 44.05%, and profits after tax were up by a significant margin, increasing by 552.73%. 10.81 crore fresh issue shares worth Rs. 800 crores and 18.92 crore offer of sale shares worth Rs. 1,400 crores went on auction. The anchor round of the IPO on November 6 saw the health insurance provider raise Rs. 990 crores.
Niva Bupa is also hoping that retail investors will apply for a minimum of 200 shares worth Rs. 14,800 crores. The company plans to use the money raised to increase base capital and help it achieve better solvency levels. The health insurance provider may also use the money raised for general corporate and operational purposes.
Qualified Institutional Buyers will get 30 percent of the net proceedings, with 10 percent each reserved for Non-Institutional and Retail investors.
ICICI Securities, Morgan Stanley India, Kotak Mahindra Capital, Axis Capital, and HDFC Bank Limited were among the lead bookrunners for the IPO, with KFin Technologies as the registrar.
Implications for Investors
Subscribers should go long-term, given Niva Bupa’s outlook to create a stronger, more customer-centric platform encompassing different areas of healthcare, including diagnostics, consultations, wellness programs, and medicine delivery. The company is also looking to expand its health insurance services, with hopes of offering various health assessment tools, digital care, medication delivery to doorsteps, and a whole lot of other wellness programs.
After the issue, Niva Bupa is valued at Rs. 13,520 crores.
Swastika Investmart warns investors, especially those with a higher risk appetite, of the company’s negative returns in fiscal 23, even with profits in the green. Swastika warns investors to approach carefully, hinting at the seemingly aggressive pricing.
Conclusion
The Niva Bupa IPO went well, with positive responses. However, investors should still consider factors like solid growth prospects. Market experts also suggest looking at the short-term volatility and the healthcare sector’s potential challenges. Investors should also not overlook other factors, including financial performance, regulations, and overall market conditions when subscribing to the IPO.
Niva Bupa
IPO
