Mon Nov 11 11:33:05 UTC 2024: ## Niva Bupa Health Insurance IPO Oversubscribed on Day Two, Closes Today

**Mumbai, November 11, 2024:** The Initial Public Offering (IPO) of Niva Bupa Health Insurance Company, formerly Max Bupa Health Insurance Company, has received strong investor interest, reaching 1.17 times subscription on day two of the share sale. The IPO, which concludes today, saw bids for 20,26,82,400 shares against 17,28,57,143 shares on offer.

Qualified Institutional Buyers (QIBs) showed strong interest, subscribing 1.50 times their allotted quota. Retail Individual Investors (RIIs) also demonstrated enthusiasm, subscribing 1.34 times their portion. The non-institutional investor category, however, received a lukewarm response, achieving only 40 per cent subscription.

The IPO, priced between ₹70-74 per share, aims to raise ₹2,200 crore. This includes a fresh issue of ₹800 crore and an offer for sale of up to ₹1,400 crore by promoters Bupa Singapore and Fettle Tone (True North). The company had initially planned to raise ₹3,000 crore but reduced the issue size.

Niva Bupa, the second standalone health insurer to float an IPO after Star Health, garnered ₹990 crore from anchor investors on Wednesday. The company plans to use the net proceeds from the fresh issuance to strengthen its capital base and solvency levels, along with general corporate purposes.

While the company operates in a rapidly growing segment, analysts have cautioned investors about the premium valuation, suggesting a Price to Earnings (PE) ratio of 165 times, significantly higher than Star Health’s 33 times PE. Investors are advised to monitor the company’s profitability growth over the years before making an investment decision.

The equity shares are proposed to be listed on the BSE and NSE. ICICI Securities, Morgan Stanley India Company, Kotak Mahindra Capital Company, Axis Capital, HDFC Bank and Motilal Oswal Investment Advisors are the book-running lead managers for the offer.

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