Mon Nov 11 07:04:26 UTC 2024: ## Niva Bupa Health Insurance IPO Over-Subscribed on Day Two
**MUMBAI, INDIA** – Niva Bupa Health Insurance, formerly Max Bupa Health Insurance Company, has received strong investor interest, with its initial public offering (IPO) oversubscribed on day two of the share sale.
The IPO, which opened on November 9, saw bids for 20,26,82,400 shares against 17,28,57,143 shares on offer, according to National Stock Exchange data. This represents a subscription level of 1.17 times.
Qualified Institutional Buyers (QIBs) showed strong appetite, subscribing 1.50 times their allotted quota. Retail Individual Investors (RIIs) also participated actively, subscribing 1.34 times their portion. However, the Non-Institutional Investor category only attracted 40% subscription.
Earlier this week, Niva Bupa raised ₹990 crore from anchor investors. The IPO, priced between ₹70-74 per share, is set to conclude on November 11.
The ₹2,200-crore IPO consists of 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 subsequently reduced the issue size.
Niva Bupa intends to utilize the net proceeds from the fresh issuance to strengthen its capital base and solvency levels, as well as for general corporate purposes.
The company’s strong performance in a fast-growing segment makes it an attractive proposition for long-term growth. However, analysts caution that the valuation is at a premium, which could pose a risk for investors.
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 to the offer. The equity shares are proposed to be listed on the BSE and NSE.
First Piper 