Niva Bupa Health Insurance is a joint venture between Bupa Group and Fettle Tone LLP, founded in 2008. Since then, it has been a top provider of comprehensive health insurance services. This includes both individual and group insurance solutions that it serves via its app and website.
The much-awaited IPO of Niva Bupa Health Insurance is set to open on November 7, 2024, with a price band of Rs. 70 to Rs. 74 per share. The 3-day IPO subscription window will stay open till November 11, 2024. The investors will have the provision to subscribe within this whole period.
This upcoming IPO will include a fresh issue of 108.1 million shares, worth a total of Rs. 800 crore, and an Offer For Sale (OFS) of 189.2 million shares (face value at Rs. 10 each), worth a total of Rs. 1,400 crore. In total, the target is to raise a total of Rs. 2,200 crore. As of now, Niva Bupa’s shares are trading at a neutral Grey Market Premium (GMP). This indicates a significant interest from the potential investors.
The IPO will be open to anchor investors on November 6, 2024. Furthermore, all Investors can bid in lots of 200 shares each, requiring a minimum investment of Rs. 14,800 for a single lot at the upper price band.
After the closure of the subscription window, the basis of allotment is expected to be finalized by November 12, 2024. Shares will be credited to investors’ demat accounts on November 13. Additionally, as per the set schedule, the shares are expected to be listed on the BSE and NSE on November 14, 2024.
The registration for the Niva Bupa Health Insurance IPO will be managed by KFin Technologies, with ICICI Securities, Morgan Stanley India, Kotak Mahindra Capital, Axis Capital, HDFC Bank, and Motilal Oswal Investment Advisors as the lead managers.
According to the company’s Red Herring Prospectus, the funds from the fresh issue will be used to bolster Niva Bupa’s capital base and support its solvency levels in line with the Insurance Regulatory and Development Authority of India (IRDAI) regulations. The proceeds will be allocated by FY2024-25, aiding in financial stability and growth.
