Niva Bupa Health Insurance IPO Oversubscribed 1.8 Times on Final Day; GMP, Subscription Status, and Key Details

The initial public offering (IPO) of Niva Bupa Health Insurance Limited concluded on Monday, November 11, witnessing an oversubscription of 1.8 times. The strong demand was primarily driven by retail investors, who showed significant interest on the last day of the bidding process.

Subscription Breakdown

• Total Bids Received: Investors placed bids for 31.13 crore shares against the 17.28 crore shares on offer.
• Retail Investors: This segment oversubscribed their allotted portion by 2.73 times, leading the subscription charts.
• Qualified Institutional Buyers (QIBs): QIBs subscribed 2.06 times their allocated shares, reflecting robust institutional interest.
• Non-Institutional Investors (NIIs): NIIs subscribed to 0.68% of their portion, indicating a lukewarm response from this segment.

IPO Details

• Offering Period: The IPO was open for public subscription from Thursday, November 7, to Monday, November 11.
• Price Band: The shares were offered in a price range of ₹70 to ₹74 per share.
• Lot Size: Investors could bid in lots of 200 shares and multiples thereof.
• Anchor Investors: Prior to the IPO opening, the company raised ₹990 crore from anchor investors on Wednesday, November 6.

Grey Market Premium (GMP)

As of November 11, the grey market premium for Niva Bupa Health Insurance stood at nil. This was a decrease from the previous GMP of ₹3 per share, suggesting that the shares were trading at par with the upper end of the IPO price band in the unofficial market.

• Implication: A nil GMP indicates that there might not be significant listing gains, and the shares could list close to the IPO price of ₹74 per share.

Company Profile

Niva Bupa Health Insurance Limited is a joint venture between the Bupa Group, a leading international healthcare company, and Fettle Tone LLP. The insurer offers a comprehensive health ecosystem accessible through its mobile application and website, providing a range of health insurance products and services to customers.

Utilization of IPO Proceeds

The funds raised from the IPO are intended to:

• Augment Capital Base: Strengthen the company's financial foundation to support future growth.
• General Corporate Purposes: Address other corporate expenses and strategic initiatives.

Listing Details

• Expected Listing Date: The shares are anticipated to be listed on the stock exchanges on Thursday, November 14.
• Stock Exchanges: Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

Key Participants

• Book Running Lead Managers:
  • ICICI Securities Limited
  • Morgan Stanley India Company Pvt Ltd
  • Kotak Mahindra Capital Company Limited
  • Axis Capital Limited
  • HDFC Bank Limited
  • Motilal Oswal Investment Advisors Limited
• Registrar to the Issue: KFin Technologies Limited

Investor Takeaways

The oversubscription, especially by retail and institutional investors, indicates strong market confidence in Niva Bupa Health Insurance's growth prospects. Investors are advised to keep an eye on the listing performance on November 14 to make informed decisions.

Conclusion

Niva Bupa Health Insurance's IPO has garnered considerable attention, closing with an overall subscription of 1.8 times. While the grey market premium suggests a modest listing, the company's strong fundamentals and the backing of established promoters may offer long-term value to investors.