Niva Bupa Health IPO: Check price band, GMP, lot size, key dates and other details

Niva Bupa Health IPO: The shares of Niva Bupa Health Insurance are expected to list on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on November 14, 2024.

In Short

• Niva Bupa Health Insurance IPO opens November 7, 2024
• Price band set at Rs 70 to Rs 74 per share
• 75% of shares allocated for qualified institutional buyers

Niva Bupa Health Insurance is set to enter the primary market with its initial public offering (IPO) scheduled to open for subscription on November 7 and remain available until November 11.

The joint venture between Bupa Group and Fettle Tone LLP has set the price band for its shares at Rs 70 to Rs 74 each, aiming to raise a total of Rs 2,200 crore from this public offering. This includes Rs 800 crore from a fresh share issue and Rs 1,400 crore from an offer for sale (OFS) by its promoters.

As the IPO approaches, the company's shares are currently trading at par in the grey market, indicating no premium as of now.

The anchor allotment for institutional investors will open a day prior, on November 6, giving institutional participants a chance to secure shares ahead of the public offering.

Each lot in the IPO consists of 200 shares, meaning a minimum investment of Rs 14,800 is required at the upper price band.

The company has allocated 75% of the shares for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 10% for retail investors. Additionally, up to 750,000 shares will be reserved for employees at a Rs 25 discount to the issue price.

Proceeds from the IPO will be utilised to strengthen the company’s capital base and enhance its solvency levels, along with other general corporate purposes.

Funds from the OFS will be directed to the selling shareholders, Bupa Singapore Holdings and Fettle Tone LLP.

Niva Bupa Health Insurance has reported strong growth, with a 44% year-on-year increase in revenue for FY24, alongside a 550% surge in profit after tax (PAT). As of March 31, 2024, the company insured 14.73 million active lives and has expanded its reach across 22 states and four union territories in India.

However, for the quarter ending June 30, 2024, Niva Bupa posted a net loss of Rs 18.82 crore on revenues of Rs 1,124.90 crore, though it recorded a net profit of Rs 81.85 crore for the financial year ending March 31, 2024.

The shares of Niva Bupa Health Insurance are expected to list on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on November 14, 2024.

The IPO is being managed by a consortium of leading financial institutions, including ICICI Securities, Morgan Stanley, and Kotak Mahindra Capital.