The shares of health insurance company Niva Bupa Health Insurance debuted today (November 14) on the stock market, listing at approximately a 6% premium over its Initial Public Offering (IPO) price. However, the IPO received mixed responses from investors, and the shares reserved in each category were not fully subscribed. Shares were issued at a price range of Rs 70-74 per share under the IPO.
Upon listing, the shares touched Rs 78.50 on the BSE and Rs 78.14 on the NSE, providing investors with a listing gain of about 6%. Following the initial trade, the stock climbed further, reaching the upper circuit at Rs 80.94 on the BSE, marking a 9.38% gain. However, the stock later saw a slight decline.
Niva Bupa's Rs 2,200 crore IPO was open for subscription from November 7 to 11 and achieved an overall subscription rate of 1.90 times. The portion reserved for Qualified Institutional Buyers (QIB) was subscribed 2.17 times, the Non-Institutional Investors (NII) segment was subscribed 0.71 times, and the retail investor portion was subscribed 2.88 times.
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The IPO included Rs 800 crore worth of new shares, along with an Offer for Sale (OFS) of 189,189,189 shares with a face value of Rs 10 each. The proceeds from the OFS will go to the selling shareholders, while the funds raised from new shares will be used to strengthen the company's solvency levels, increase its capital base, and cover general corporate purposes.
About Niva Bupa Health Insurance
Founded in 2008, Niva Bupa Health Insurance is a joint venture between Bupa Group and Fatal Tone LLP. The company provides health insurance through both individual and group products and operates across 22 states and 4 union territories in India.
Financially, Niva Bupa has shown significant growth. In FY 2022, the company reported a net loss of Rs 196.53 crore. However, in FY 2023, it posted a net profit of Rs 12.54 crore, which increased to Rs 81.85 crore in FY 2024. Revenue grew at a compound annual growth rate (CAGR) of over 47%, reaching Rs 4,118.63 crore. In the first quarter of the current financial year 2024-25, the company reported a net loss of Rs 18.82 crore and revenue of Rs 1,124.90 crore.