Niva Bupa Hits Bourses Today, Shares Drop 5.2% Post Listing Niva Bupa Health Insurance Company's shares were listed at INR 78.14 per piece on the National Stock Exchange today at a premium of 5.59 per cent to the IPO price of INR 74 a piece.
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Niva Bupa Health Insurance Company's shares were listed at INR 78.14 per piece on the National Stock Exchange today at a premium of 5.59 per cent to the IPO price of INR 74 a piece.
However, the shares are now being traded at INR 74.01, a drop of 5.29 percent, according to the NSE. The NSE also shows that Niva Bupa has accrued a total of INR 13,551.05 crore worth of market capitalization, with 35.98 per cent of deliverables recorded.
The health insurance company is a joint venture between the Bupa Group and Fettle Tone LLP, and 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, resulting in the shares being oversubscribed by 1.80 times. Earlier to this, the company has also mobilized a sum of INR 990 crore from anchor investors.
The subscription was driven by Retail Individual Investors (RIIs) with subscriptions of 2.73 times, subscriptions by Qualified Institutional Buyers (QIBs) at 2.06 times, and Non-Institutional Investors (NIIs) by 0.68 times, according to data from the NSE.
According to Bajaj Broking, annualizing FY25 earnings to the post-IPO fully diluted equity base, the asking price results in a negative price-to-earnings (P/E) ratio. "Based on FY24 earnings, the P/E ratio stands at 642.22. Consequently, the issue appears to be aggressively priced," said Bajaj Broking in its IPO note for Niva Bupa.
Niva Bupa intends to use the net proceeds from the IPO to boost its capital base and strengthen solvency levels as well as 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.
