Niva Bupa's ₹2,200 crore IPO now open: Should you subscribe?
Niva Bupa Health Insurance Company, a key player in the health insurance space, has launched its initial public offering (IPO) today. The company is looking to raise ₹2,200 crore through this public issue. Ahead of the IPO launch, Niva Bupa had raised ₹990 crore from anchor investors in a bidding process that ended on November 6.
Niva Bupa's IPO structure and investment details
The Niva Bupa IPO consists of a fresh issue of 108,108,108 shares and an offer for sale of 189,189,189 shares. The face value of each share is ₹10. The company has priced the IPO at ₹70-74 per share with a lot size of 200 shares. This means that investors can bid for a minimum of one lot (200 shares) and in multiples thereof.
Niva Bupa's IPO subscription window and allotment schedule
The subscription window for Niva Bupa's public offering will be open until November 11. The basis of allotment is likely to be finalized on November 12, with shares expected to be credited to investors' demat accounts by November 13. The shares will likely debut on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on November 14.
Niva Bupa's IPO proceeds utilization and market performance
Niva Bupa plans to utilize the net proceeds from the fresh issue to enhance its capital base and bolster solvency levels. This will be achieved by investing in instruments prescribed under IRDAI (Actuarial, Finance, and Investment Functions of Insurers) Regulations, 2024. The company also intends to use funds for general corporate purposes. Ahead of its IPO launch, Niva Bupa's unlisted shares were trading flat in gray markets with a gray market premium (GMP) of zero.
Analysts' views on Niva Bupa's IPO
Analysts at Anand Rathi's research team have recommended investors to subscribe to the Niva Bupa IPO with a long-term perspective. They noted the company's aim to build a comprehensive health insurance platform and healthcare ecosystem. However, brokerage firm Swastika Investmart has advised that only high-risk investors should consider this IPO due to its aggressive pricing and recent financial performance.
