Round 11:30 am, the very best subscription was witnessed by the retail individuals, who bid for 1,01,98,000 shares from the three,14,28,571 reserved for them. That they had subscribed to the problem by 32%. Non-institutional traders (NIIs) had subscribed the problem by 2%.
The certified institutional consumers (QIBs) are but to bid for the problem.
The difficulty, which is a contemporary fairness sale of Rs 800 crore and a suggestion on the market (OFS) of Rs 1.89 crore shares, might be accessible for bidding until November 11.
Underneath the OFS, Bupa Singapore Holdings and Fettle Tone will offload their half stakes.
The corporate proposes to utilise the web proceeds from the contemporary subject in the direction of augmentation of its capital base to strengthen solvency ranges and for normal company functions.
Niva Bupa Healthcare IPO worth band
The corporate has mounted a worth band of Rs 70-74 apiece, the place traders can bid for 200 shares in a single lot.
Niva Bupa Healthcare IPO GMP
Forward of the problem opening, the corporate’s shares had been buying and selling with a GMP of Rs 0 within the unlisted market.
Niva Bupa Healthcare IPO evaluate
Analysts suggested traders to subscribe to the IPO from a long-term perspective regardless that it’s priced on the aggressive facet.
“Niva Bupa is a number one participant in India’s medical insurance market. It’s among the many fastest-growing firms within the sector. Posted a constructive turnaround in FY23, although latest earnings within the first quarter of the present fiscal are within the detrimental. Advocate just for high-risk traders contemplating an software,” mentioned Swastika Investmart.
“On the higher worth band, the corporate is valued at P/BV of 6.1X with a market cap of Rs 13520 crore publish subject of fairness shares. We consider that the problem is absolutely priced and suggest Subscribe – Lengthy Time period score to the IPO,” Anand Rathi mentioned.
Different particulars
Niva Bupa is the second standalone well being insurer (SAHI) to eye the Indian bourses by IPO, after Star Well being & Allied Insurance coverage Firm.
It’s India’s third largest and second quickest rising SAHI primarily based on an total Well being GDPI of Rs 5,494 crore in fiscal 2024, which grew at a CAGR of 41.37% from FY 2022 to 2024. It boasts a Gross Direct Written Premium (GDPI) of Rs 5,499.43 crore in fiscal 2024.
The corporate makes use of machine learning-based algorithms and logistics regression fashions to establish fraudulent claims, and this has helped them drive larger success on fraud detection, and scale back investigation referrals, thereby minimizing the impression on the shopper expertise
From FY22 to FY24, Niva Bupa’s total GWP elevated at a compound annual development charge (CAGR) of 41.27%, whereas its retail well being GWP grew at a CAGR of 33.41%.
The corporate’s total well being GDPI development of 41.37% throughout this era is likely one of the highest amongst SAHIs and almost double the business’s common development charge of 21.42%.
Niva Bupa has 143,074 brokers, 210 bodily branches throughout 22 states and 4 union territories in India, as of March 2024. It distributes merchandise by 64 banks and different company brokers, together with main establishments like HDFC Financial institution and Axis Financial institution, in keeping with the Redseer Report.
ICICI Securities, Morgan Stanley India, Kotak Mahindra Capital, Axis Capital, HDFC Financial institution and Motilal Oswal Funding Advisors are the book-running lead managers and KFin Applied sciences is the registrar of the provide.
(Disclaimer: Suggestions, solutions, views and opinions given by the consultants are their very own. These don’t signify the views of Financial Occasions)
