Mon Nov 11 19:28:13 UTC 2024: ## Niva Bupa Health Insurance IPO Over-Subscribed, but Grey Market Premium Remains at Zero
**New Delhi, [Date]** – Niva Bupa Health Insurance Co.’s initial public offering (IPO) has been oversubscribed 1.8 times on its third day of bidding, driven by strong demand from retail investors. The IPO, which opened on [Date], saw subscriptions of 1.17 times on the second day and 0.65 times on the first day.
Despite the strong subscription, the grey market premium (GMP) for the IPO remains at zero, indicating no expected gain over the issue price, according to InvestorGain. This suggests a potential listing price of Rs 74 per share, the upper end of the company’s price band.
The IPO, which is aiming to raise Rs 2,200 crore, consists of a fresh issue of shares worth Rs 800 crore and an offer for sale (OFS) of up to Rs 1,400 crore. The total issue size was trimmed from the initial Rs 3,000 crore due to the largest selling shareholder, True North, reducing their stake in the offering.
The IPO saw strong participation from qualified institutional buyers (QIBs) who subscribed 2.06 times the allotted portion, while non-institutional investors subscribed 0.68 times their allotted portion.
Niva Bupa plans to use the proceeds from the IPO to strengthen its capital base and solvency levels. The company has reported impressive growth in recent years, with total income rising to Rs 1,125 crore in the quarter ended June 2024, compared to Rs 806 crore in the same period last year.
While the company’s profit has grown from Rs 12 crore in fiscal 2023 to Rs 82 crore in fiscal 2024, it reported a loss of Rs 19 crore in the June quarter.
**Disclaimer:** Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.
First Piper 