Mon Nov 11 16:08:43 UTC 2024: ## Niva Bupa Health Insurance IPO Closes with Moderate Subscription

**New Delhi, November 11, 2024:** Niva Bupa Health Insurance Company’s initial public offering (IPO) concluded with a moderate response from investors, closing at 1.17 times subscription. The IPO, which opened on November 10, saw strong interest from retail investors, with a subscription rate of 2.88 times, while qualified institutional buyers (QIBs) subscribed 2.17 times. Non-institutional investors (NIIs) showed less enthusiasm, subscribing only 0.71 times.

The IPO aimed to raise Rs 2,200 crore, including a fresh issue of Rs 800 crore and an offer-for-sale (OFS) of Rs 1,400 crore. Shares were offered in a price band of Rs 70-74 per share, with a minimum lot of 200 shares.

Despite a lack of significant grey market premium (GMP), most brokerage firms remain optimistic about Niva Bupa’s long-term prospects, citing the rising demand for healthcare products, strong market share, and the company’s growth potential.

Bajaj Broking highlighted Niva Bupa’s impressive growth, with gross direct premium income (GDPI) increasing by 41.37% between FY22 and FY24, nearly double the average industry growth rate. They gave a long-term subscribe rating, acknowledging the seasonal nature of the insurance industry.

However, some analysts expressed concerns regarding the competitive landscape, inconsistent financial performance, and high valuations. SBI Securities, while acknowledging Niva Bupa’s strong growth in gross written premium (GWP), cautioned about the IPO’s pricing, recommending investors to avoid the IPO for now and re-evaluate after listing.

The allotment for the IPO is expected to be finalized on Tuesday, November 12, with the shares expected to list on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on Thursday, November 14.

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