Mon Nov 11 14:52:55 UTC 2024: ## Niva Bupa Health Insurance IPO Over-Subscribed, But No Grey Market Premium

**Mumbai, India** – Niva Bupa Health Insurance Co.’s initial public offering (IPO) has been oversubscribed by 1.8 times on the third day of bidding, led by strong demand from retail investors. While the issue saw moderate subscription on the first two days (0.65 times and 1.17 times respectively), retail investors flocked to the offering on Monday, driving the overall subscription to a healthy level.

The company has set a price band of Rs 70-74 per share for its Rs 2,200 crore IPO, which consists of a fresh issue of shares worth Rs 800 crore and an offer for sale of up to Rs 1,400 crore. Despite the initial planned size of Rs 3,000 crore, the IPO was ultimately trimmed due to a downsizing of the selling stake by True North, the largest selling shareholder, as per CEO Krishnan Ramachandran.

Notably, the IPO currently enjoys no grey market premium (GMP), indicating that investors anticipate no immediate gains over the issue price. InvestorGain, a market research firm, estimates the listing price to be Rs 74 per share based on the current GMP. It’s crucial to note that GMP is speculative and not an official price quote.

Niva Bupa’s strong financials, with a reported revenue of Rs 2,049 crore in FY24 (more than double from the previous year), have attracted investors. The company’s profit also grew from Rs 12 crore in FY23 to Rs 82 crore in FY24, despite posting a loss of Rs 19 crore in the June quarter. The IPO proceeds will be used to bolster the company’s capital base and strengthen its solvency levels.

The IPO has been allocated with 75% reserved for qualified institutional buyers, 15% for non-institutional buyers, and 10% for retail investors. The strong demand from retail investors, coupled with an oversubscription of 2.06 times from qualified institutional buyers, suggests a positive outlook for Niva Bupa.

**Disclaimer:** Investments in IPOs are subject to market risks. Consulting with financial advisors and thoroughly reading the red herring prospectus before placing bids is crucial.

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