Niva Bupa Share Price & IPO Listing Highlights: Niva Bupa shares drop after listing at 6% premium

​Niva Bupa shares​ fell 5.16% on the NSE to ₹74.11 as at 3.06 pm.

Niva Bupa shares dropped 3.60% on the NSE to trade at ₹75.33 as at 2.06 pm. On the BSE, the stock declined 4.09% to ₹75.29

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Niva Bupa shares declined 3.39% on the NSE to ₹75.49 as at 12.44 pm. 

Niva Bupa Health Insurance made a positive debut on the stock market, listing at Rs 78.14, a 5.5% premium over its issue price of Rs 74. This performance was slightly better than expected.

The IPO, which was moderately subscribed 1.9 times, reflected a cautious investor sentiment, potentially influenced by the company’s recent negative quarterly earnings. While Niva Bupa has shown strong growth and a positive turnaround in recent years, the short-term performance concerns and the IPO’s pricing seemed to have tempered investor enthusiasm.

Investors who participated in the IPO can consider holding their shares, but should closely monitor the company’s performance and the broader market conditions. New investors may want to wait for a clearer picture of the company’s future trajectory before investing.

- Shivani Nyati, Head of Wealth at Swastika Investmart

Shares of Niva Bupa Health Insurance Company Ltd, formerly Max Bupa Health Insurance Company, on Thursday listed with a premium of 6 per cent against the issue price of Rs 74.

The stock made its debut at Rs 78.50, up 6 per cent on the BSE. It further jumped 9.37 per cent to Rs 80.94.

At the NSE, it listed at Rs 78.14, a surge of 5.59 per cent from the issue price.

The company’s market valuation stood at Rs 14,069.93 crore.

The initial public offering of Niva Bupa Health Insurance Company Ltd got subscribed 1.80 times on the closing day of share sale on Monday.

The Initial Public Offering (IPO) had a price band of Rs 70-74 per share.

The Rs 2,200-crore IPO had a fresh issuance of equity shares worth Rs 800 crore and an offer-for-sale of up to Rs 1,400 crore by promoters.

The company intends to utilise the net proceeds from the fresh issuance towards boosting its capital base to strengthen solvency levels, and a portion will be used for general corporate purposes.

This is the second standalone health insurer to float an IPO after Star Health & Allied Insurance Company.

(Photo: X/@NSEIndia)

(Photo: X/@NSEIndia)

​​Niva Bupa shares ​​fell 3.92% on the NSE to trade at ₹75.08 as at 11.34 am. 

Day’s high: ₹81

Day’s low: ₹73.51

(NSE data)

​​Niva Bupa Health Insurance Company​​ shares declined 1.95 per cent to ₹76.62 on NSE by 10.30 am on Thursday, after listing at a premium earlier in the day. The stock debuted at ₹78.14 on NSE and ₹78.50 on BSE, marking a 5.5-6 per cent premium over its issue price of ₹74.

Trading data showed buy orders for 39.14 lakh shares against sell orders for 38.55 lakh shares.

The ₹2,200-crore IPO, which closed on Monday, was ​​subscribed 1.80 times,​​ with retail investors showing strong interest at 2.73 times subscription. QIB portion was subscribed 2.06 times, while non-institutional investors’ segment saw 0.68 times subscription.

Anupama Ghosh of businessline writes | ​​Click to read more​​

(NSE data)

Here’s bl Research Bureau’s earlier report on Niva Bupa

Niva Bupa Health Insurance is the second standalone health insurance (SAHI) IPO in recent times after Star Health. The fast-growing company in a fast-growing segment does offer a strong proposition for investors for long-term growth. But the valuation is at a premium, which transfers the risk of growth to investors at the current levels. The company reported ₹82 crore PAT in FY24 and the upper band of IPO values it at ₹13,520 crore or 165 times PE, which is a premium to Star Health (33 times PE). The nascent operator with lower profitability has inflated PE multiples, but on a Price to book ratio is similar to the industry at 4.5 times its FY24 book value (Star Health 4.4 times). We recommend investors track the profitability expansion over the years before investing in the stock. The IPO has a fresh issue of ₹800 crore and OFS of ₹1,400 crore from promoters Bupa Singapore and Fettle Tone (True North).

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The IPO of Niva Bupa Health Insurance Company Ltd, formerly Max Bupa Health Insurance Company, got subscribed 1.80 times on the closing day of share sale on Monday.

The Initial Public Offering (IPO) received bids for 31,13,62,800 shares against 17,28,57,143 shares on offer, as per NSE data.

The portion for Retail Individual Investors (RIIs) attracted 2.73 times subscription while the category for Qualified Institutional Buyers (QIBs) got subscribed 2.06 times. Non-Institutional Investors part fetched 68 per cent subscription.

Niva Bupa Health Insurance Company Ltd on Wednesday said it has mobilised Rs 990 crore from anchor investors.

The issue has a price band of Rs 70-74 per share.

The Rs 2,200-crore IPO is a combination of fresh issuance of equity shares worth Rs 800 crore and an offer for sale of up to Rs 1,400 crore by promoters. The company reduced the issue size as it was earlier looking to raise Rs 3,000 crore.

The company intends to utilise the net proceeds from the fresh issuance towards boosting its capital base to strengthen solvency levels, and a portion will be used for general corporate purposes.

This is the second standalone health insurer to float an IPO after Star Health & Allied Insurance Company.

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.

PTI report

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