Niva Bupa shares end lower post-IPO debut

Catch the action from today’s listing ceremony of Niva Bupa Health Insurance Company Limited from our Exchange @NSEIndia.#NSEIndia #listing #IPO #StockMarket #ShareMarket #NivaBupaHealthInsuranceCompanyLimited @ashishchauhan pic.twitter.com/6ptQ6rskZP

— NSE India (@NSEIndia) November 14, 2024

Niva Bupa Health Insurance Company’s shares made their debut on the National Stock Exchange (NSE) on Thursday, November 14, at ₹78.14 per share. This marked a 5.5% premium over the issue price of ₹74 per share. However, by the end of the trading day, the stock had settled 5.3% lower than its opening price. The ₹2,200-crore IPO consisted of a fresh issuance worth ₹800 crore and an offer for sale of ₹1,400 crore. The public issue saw strong demand, with the price band set at ₹70-₹74 per share. Bids were received for over 31 crore shares against the 17 crore shares on offer.

Congratulations Niva Bupa Health Insurance Company Limited on getting listed on NSE today. Niva Bupa Health Insurance Company Limited is a joint venture between the Bupa Group and Fettle Tone LLP that provides insurance in the health sector. The Public issue was of ~INR 2,200.00… pic.twitter.com/LBkyPqcSlN

— NSE India (@NSEIndia) November 14, 2024

This resulted in a subscription rate of 1.80 times. As of 3:35 PM, Niva Bupa’s shares were trading at ₹75.55, down 3.31% from the issue price. The stock hit a low of ₹73.51 during the trading session.

#ETNOWExclusive | After a decent debut for Niva Bupa, @anuragshah_ speaks with Bupa Global Chairman Roger Davis on growth prospects.

Davis highlights Bupa's long-term bullish outlook on India’s market. Tune in for insights! @Bupa @Niva_Bupa #NSE #NivaBupa pic.twitter.com/g4AkOkbSXF

— ET NOW (@ETNOWlive) November 14, 2024

The scrip saw a traded volume of 339.92 lakh shares and a traded value of ₹260.45 crore. This brought the total market capitalization to ₹13,764.82 crore. Krishnan Ramachandran, Managing Director and Chief Executive Officer, led the team during the IPO process.

#WATCH | Krishnan Ramachandran of Niva Bupa, shares insights on the company's listing, Bupa's stake, and the potential impact of IRDAI's push for 100% FDI in insurance @Niva_Bupa @AyeshaFaridi1 @_sherylld #NSE pic.twitter.com/S7u2ydxCfd

— ET NOW (@ETNOWlive) November 14, 2024

Other key executives include Vishwanath Mahendra, Chief Financial Officer, Ankur Kharbanda, Chief Distribution Officer, and Dr. Bhabatosh Mishra, Director of Claims, Underwriting, and Product. Niva Bupa shares were listed simultaneously on the BSE and NSE. Prior to the public offer, the company raised ₹990 crore from anchor investors. The proceeds from the IPO will be used to augment the capital base and support general corporate purposes. The public offer received a strong response, with a total subscription of 1.80 times. This robust interest underscores confidence in Niva Bupa’s growth potential in the health insurance sector.

Niva Bupa’s mixed IPO performance

Niva Bupa Health Insurance’s stock faced a mixed debut on the NSE, starting strong but retreating as the day progressed. The response to the IPO reflects significant interest in the company, which plans to use the funds to strengthen its capital base and fuel further growth. The health insurance company, a joint venture between the Bupa Group and Fettle Tone LLP, offers coverage and access to healthcare services across India. Niva Bupa’s INR 2,200 crore initial sale, with a price band of INR 70-74 per share, received total bids of 31,13,62,800 equity shares against 17,28,57,143 shares on offer. This resulted in the shares being oversubscribed by 1.80 times. The subscription was driven by Retail Individual Investors (RIIs) with subscriptions at 2.73 times, subscriptions by Qualified Institutional Buyers (QIBs) at 2.06 times, and Non-Institutional Investors (NIIs) at 0.68 times, according to the NSE data. Niva Bupa intends to use the net proceeds from the IPO to boost its capital base and strengthen solvency levels, as well as for general corporate expenses. Morgan Stanley India Company, ICICI Securities, Kotak Mahindra Capital Company, Axis Capital, HDFC Bank, and Motilal Oswal Investment Advisors are the book-running lead managers (BRLMs) for the IPO. The allotment of shares for Niva Bupa Health Insurance’s ₹2,200 crore IPO is scheduled for today. The issue comprises a fresh issue of 10.81 crore shares, aggregating to ₹800 crore, and an offer for sale of 18.92 crore shares, aggregating to ₹1,400 crore. The IPO price band is fixed at ₹70 to ₹74 per share, with a minimum lot size of 200 shares. This implies a minimum investment of ₹14,800 for retail investors. Investors can check their allotment status on the registrar’s website or on the BSE website by entering their PAN, application number, or Demat account details. The Niva Bupa Health Insurance IPO grey market premium (GMP) stood at ₹0 on Tuesday. Adding this to the upper price band of ₹74 indicates a listing price of ₹74, which is a 0% premium. However, it’s crucial to note that while GMPs can provide some insight into market sentiment towards an IPO, they are not always a reliable predictor of the stock’s performance upon listing. Niva Bupa Health Insurance is a prominent player in the health insurance sector in India. The company offers a wide range of health insurance products and services to cater to the diverse needs of its customers. The IPO is a significant step in the company’s growth journey.