Niva Bupa IPO Debuts With 6% Premium On BSE
During its subscription phase, the Rs 2,200 issue garners a total subscription of nearly 2 times
Niva Bupa, a health insurer platform backed by True North debuted on the Indian bourses on Monday with a premium of 5.59 per cent at Rs 78.14 on the National Stock Exchange (NSE) against the issue price of Rs 74. While on the Bombay Stock Exchange (BSE) the issue listed with 6.08 per cent premium at Rs 78.50.
During its subscription phase, the Rs 2,200 issue garnered a total subscription of nearly 2 times. Retail category was filled nearly 3 times subscription, while qualified institutions category stood at 2.17 times subscription.
The IPO consisted of fresh issues of up to Rs 800 crore and an offer for sale (OFS) of upto 1,400 crore by existing shareholders and promoters. The price band for the IPO was fixed at Rs 70 to 74 per equity share.
ICICI Securities, Morgan Stanley India, Kotak Investment Capital, Axis Capital, Motilal Oswal and HDFC Bank were the book running lead managers to the offer, while Kfin Technologies was the registrar to the issue.
Niva Bupa intended to utilise the net proceeds towards augment capital base to strengthen solvency levels.
Besides, the firm will also get benefits on listing in the public market which will enhance the brand’s visibility and provide liquidity to the shareholders.
As of 31 March 2024, the gross written premium (GWP) stood at Rs 5,607.57 crore, up from Rs 4,073.03 crore the previous year, with 14.73 million active insured lives.
Notably, the growth rate of its GWP was 41.27 per cent CAGR between Fiscal 2022 and 2024. By 31 March 2024, there were 10,460 network hospitals, up from 8,562 on that day in 2022.
The amount of premium earned for FY24 was Rs 3,811.25 crore, up from Rs 2,662.75 crore the previous year. The total income for the fiscal year was Rs 4,118.63 crore. The year's net profit was Rs 81.85 crore as compared to Rs 1.25 crore in the previous year.
