Niva Bupa Health Insurance shares will hit Dalal Street on Thursday, November 14. According to market signals, the listing of Niva Bupa Health is going to be timid. Even on the grey market, the premium or GMP for the stock ahead of the IPO launch was seen trading at just Rs 1, suggesting that the demand has been restricted and the expectations are muted.
The IPO opened for bidding from November 7 to November 11, mopping up Rs 2,200 crore after selling shares in the price band of Rs 70-74 each. This constituted an offer of fresh shares worth Rs 800 crore and an offer-for-sale of Rs 1,400 crore. Still, even while the IPO had raised considerable funds, the total subscription it received came only at 1.8 times.
Qualified institutional buyers subscribed at 2.06 times, while those from the retail segment subscribed at 2.73 times. The Non Institutional Investor segment, on the other hand, was undersubscribed at a mere 68 percent.
Niva Bupa Health Insurance shares attract investors
Aggressive pricing might have impacted investor interest,” said Shivani Nyati, Head of Wealth at Swastika Investmart. While the company offers promising prospects in the rapidly growing health insurance sector in India, market conditions and recent financial performance call for caution.
Niva Bupa, as an independent health insurer, was founded in 2008, through the partnership of Bupa Group and Fettle Tone LLP. The firm has achieved an excellent position in India’s health insurance market, commitment to providing accessible, integrated health care. It aims to deliver a comprehensive health environment through its Niva Bupa Health application and portal and seeks holistic customer support along with accessibility.
Niva enters as major competitor
Brokerages have been largely bullish and constructive on the IPO, looking at it with a long-term perspective. The issue has been managed by big institutions like ICICI Securities, Kotak Mahindra Capital, and HDFC Bank, and Kfin Technologies is the registrar.
Niva Bupa is entering a highly competitive space as a major player with this debut, but investors can be pretty cautious in waiting to see how the company performs as interest in the IPO was modest before listing and market sentiment has been quite cautious.
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