Mon Nov 11 06:03:56 UTC 2024: ## Niva Bupa Health Insurance IPO Opens, Receives Strong Interest

**Mumbai, India** – Niva Bupa Health Insurance Company Ltd, formerly known as Max Bupa Health Insurance, commenced its initial public offering (IPO) on Thursday, November 7th. The offer, which concludes on Monday, November 11th, has a price band of ₹70-74 and has already raised ₹990 crore from anchor investors.

Foreign and domestic institutions like Zulia Investments Pte, Amansa Holdings, and Morgan Stanley participated in the anchor round. The IPO has reserved 75% of the shares for qualified institutional buyers (QIB), 15% for non-institutional investors (NII), and 10% for retail investors.

Niva Bupa, a leading standalone retail health insurer (SAHI) in India, reported a Gross Direct Written Premium (GDPI) of ₹5,499.43 crore for fiscal year 2024. The company’s Gross Written Premium (GWP) rose by 37.68% to ₹5,607.57 crore in fiscal 2024, while profit surged to ₹81.85 crore.

The IPO has garnered strong interest, being subscribed 1.17 times by Friday, the second day of bidding. Retail investors have subscribed 1.34 times, NII 40%, and QIB 1.50 times.

While the brokerage firm recommends subscribing to the IPO with a long-term perspective, they caution investors about the aggressive pricing and the significant offer for sale (OFS) portion of the issue.

Niva Bupa’s IPO, valued at ₹2,200 crore, includes a fresh issuance of ₹800 crore and a promoters’ offer for sale of ₹1,400 crore. The company will utilize the proceeds from the fresh equity issuance to enhance its capital base and solvency levels.

Despite the strong interest and the company’s position as a rapidly growing player in the Indian health insurance market, investors should carefully consider the risks associated with the aggressive pricing and large OFS before making an investment decision.

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