Niva Bupa Health Sets a Price Band of Rs.70–74 a Share for Its IPO

Niva Bupa Health Insurance is all in the stock market news with its Initial Public Offering (IPO) priced between Rs.70-74 per share. Starting on November 7, 2024, this public offering aims to raise Rs.2,200 crore. If you’re looking for the scoop on Niva Bupa IPO, here’s everything in a nutshell!

What’s the IPO all about?

Niva Bupa’s IPO, opening November 7, 2024, includes a fresh issue of Rs.800 crore aimed at boosting its capital and solvency. The offer-for-sale (OFS) totals Rs.1,400 crore, with major promoters Bupa Singapore and True North’s Fettle Tone LLP offloading shares worth Rs.350 crore and Rs.1,050 crore, respectively. The IPO closes on November 11, with allotment on November 12, and listing on November 14 on the BSE and NSE. A minimum lot size of 200 shares requires a retail investment of Rs.14,800.

Financials

Niva Bupa has been busy scaling up in the health insurance sector. In FY24, it posted a net profit of Rs.81.85 crore, a jump from Rs.12.5 crore the previous year. However, the operating profit dropped to Rs.188 crore from Rs.350.9 crore in FY23, showing some pressure on profitability. In the June 2024 quarter, Niva Bupa reported a smaller loss of Rs.18.8 crore compared to Rs.72.2 crore at the same time last year, with operating profit rebounding to Rs.23.2 crore.

Where Does Niva Bupa Stand?

With a gross direct premium income (GDPI) of Rs.5,494.43 crore in FY24, Niva Bupa holds a 17.29% slice of India’s standalone health insurance (SAHI) market. Its gross written premium (GWP) has grown at an impressive CAGR of 41.27% between FY22-FY24, with a retail health focus that continues to drive its market share.

Conclusion: Niva Bupa’s IPO is an opportunity to jump into India’s health insurance sector. While the growth story is strong, investors should weigh the recent dip in profitability. For those interested in the health insurance space, this could be an interesting prospect with the potential to benefit from India’s growing demand for health coverage.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.