Countdown begins! Niva Bupa IPO closes today: GMP up 4%; should you apply?

The initial public offering (IPO) of health insurance provider Niva Bupa Health Insurance Company, which opened for public subscription on Thursday, November 7, 2024, will close today, Monday, November 11, 2024.  Rs 2,200 crore public offering for Niva Bupa, comprising a fresh issue of 108,108,108 shares and an offer for sale (OFS) of 189,189,189 shares with a face value of Rs 10, has seen a decent response from investors so far, achieving 1.17 times subscription till around 10:12 AM on Monday, according to NSE data.

 

Demand was highest among Qualified institutional buyers (QIBs), who subscribed 1.50 times, followed by Retail individual investors (RIIs) at 1.54 times and Non-institutional investors (NIIs) at 0.43 times.

 

Niva Bupa has set a price band of Rs 70-74 for the IPO, with a lot size of 200 shares, allowing investors to bid for a minimum of 200 shares and in multiples thereof.

 

Meanwhile, the unlisted shares of Niva Bupa were trading at a premium of Rs 3, which translates to a GMP of 4.03 per cent against the upper price band of Rs 74, on Monday. This reflects favourable market sentiments for the public offering.

 

With the subscription window closing today, the basis of allotment for Niva Bupa IPO shares is expected to be finalised by Tuesday, November 12, 2024. Upon successful allotment, shares are likely to be credited to investors' demat accounts by Wednesday, November 13, 2024. Niva Bupa shares are scheduled to debut on the BSE and NSE exchanges on Thursday, November 14, 2024.

 

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

 

Should you subscribe to the Niva Bupa IPO?

Brokerages including Anand Rathi Research Team, Swastika Investmart, and Bajaj Broking have reviewed the public offering of Niva Bupa and shared their outlook for investors. Market analysts have broadly recommended subscribing to the public issue from a long-term perspective. READ MORE

 

Niva Bupa intends to utilise the net proceeds from the fresh issue, as per IRDAI regulations, towards augmenting its capital base to maintain and strengthen solvency levels by investing in instruments and in the manner prescribed under the IRDAI (Actuarial, Finance and Investment Functions of Insurers) Regulations, 2024 (IRDAI AFIF Regulations). 

 

Niva Bupa is a health insurance company operating in India. The company provides health insurance products and services to its customers. Their 'Niva Bupa Health' mobile app and website offer various healthcare solutions, including diagnostics and digital consultations. The company aims to provide access to healthcare services through its platform.