The upcoming IPO of Niva Bupa Health Insurance Company Limited has attracted attention among investors seeking new opportunities in the health insurance sector. IPO investments like this bring potential growth prospects for those looking to diversify portfolios with emerging businesses.
This offering opens doors for both new and seasoned investors interested in upcoming IPOs from established companies entering the public market. As with other IPOs, understanding the company's background, financials, and market approach can help investors gauge its future performance.
This overview explores key details, including the issue date, pricing, and lot size, providing essential insights for those considering the Niva Bupa Health Insurance Company Limited IPO.
The Niva Bupa Health Insurance IPO is set as a book-built issue valued at ₹2,200 crores. This IPO includes a fresh issue of 10.81 crore shares, raising ₹800 crores, alongside an offer for sale of 18.92 crore shares amounting to ₹1,400 crores.
The Niva Bupa Health Insurance IPO is scheduled to open for subscription on November 7, 2024, and close on November 11, 2024. Allotment finalisation is expected on Tuesday, November 12, 2024, with a tentative listing on the BSE and NSE set for Thursday, November 14, 2024.
The Niva Bupa Health Insurance IPO has a price band set between ₹70 and ₹74 per share, with a minimum application lot size of 200 shares. For retail investors, the minimum investment amount required is ₹14,800. For small Non-Institutional Investors (sNII), the minimum lot size is 14 lots (2,800 shares), totalling ₹207,200, while for large Non-Institutional Investors (bNII), it's 68 lots (13,600 shares), equating to ₹1,006,400.
ICICI Securities, Morgan Stanley India, Kotak Mahindra Capital, Axis Capital, HDFC Bank, and Motilal Oswal are the lead managers, and Kfin Technologies Limited is the IPO registrar.
| Niva Bupa Health Insurance Company IPO open date | November 7, 2024 (Thursday) |
| Niva Bupa Health Insurance Company IPO close date | November 11, 2024 (Monday) |
| Allotment allocation | November 12, 2024 (Tuesday) |
| Refund initiation | November 13, 2024 (Wednesday) |
| Crediting shares to DEMAT | November 13, 2024 (Wednesday) |
| Date of listing | November 14, 2024 (Thursday) |
| Cut-off for UPI mandate confirmation | November 11, 2024 (By 5 PM) |
Established in 2008, Niva Bupa Health Insurance Company Limited is a joint venture between the Bupa Group and Fettle Tone LLP, focusing on health insurance offerings. The company provides a well-rounded service by offering customers a comprehensive health ecosystem accessible via the Niva Bupa Health mobile app and website.
Niva Bupa's products are divided into:
As of March 31, 2024, Niva Bupa insured 14.73 million active lives across 22 states and four union territories in India. From FY2022 to FY2024, the company's Gross Written Premium (GWP) rose at a CAGR of 41.27%, with retail health GWP climbing by 33.41%.
Niva Bupa's competitive advantages include:
As of March 2024, Niva Bupa's technology team comprised 126 members, developing digital assets, software, and mobile applications to support its growing customer base.
Niva Bupa Health Insurance Company Limited has shown impressive growth, with revenue rising by 44.05% and profit after tax (PAT) surging by 552.73% between the financial years ending March 31, 2023, and March 31, 2024.
With a market capitalisation of ₹13,380.91 crore, the Niva Bupa Health Insurance Company Limited IPO underscores this strong financial performance. Additionally, the Niva Bupa Health Insurance Company Limited IPO GMP has held steady, reflecting ongoing interest from investors.
| Period Ended | 30th June 2024 | 31st March 2024 | 31st March 2023 |
| Total assets | 6,542.06 | 6,191.87 | 3,876.57 |
| Revenue | 1,124.90 | 4,118.63 | 2,859.24 |
| Profit after tax | -18.82 | 81.85 | 12.54 |
| Net worth | 2,031.77 | 2,049.59 | 831.12 |
| Reserves and surplus | 1,282.44 | 1,282.02 | 334.26 |
| Borrowing | 250.00 | 250.00 | 250.00 |
*Amount in ₹ crores
The Niva Bupa Health Insurance Company Limited IPO offers notable strengths that may appeal to investors, with a foundation in robust growth, product variety, and a solid market presence. Here's what makes it stand out:
With diverse options of health insurance solutions for individuals, families, and groups, Niva Bupa Health Insurance addresses diverse customer needs, making the Niva Bupa Health Insurance IPO a versatile choice in the upcoming IPOs space.
The company leverages automation, machine learning, and real-time CRM tools, enhancing customer engagement and retention, which strengthens the appeal of the Niva Bupa Health Insurance Company Limited IPO GMP.
As a venture of Bupa Group and Fettle Tone LLP, Niva Bupa draws on extensive expertise and brand trust, adding credibility to its market position.
With significant revenue and profit gains from FY22 to FY24, Niva Bupa demonstrates steady financial growth, reinforcing the potential of this IPO investment.
While the Niva Bupa Health Insurance IPO offers numerous strengths, investors should also consider potential challenges that may impact its growth and market standing.
Niva Bupa operates in a highly regulated health insurance environment. Any shifts in regulations could directly influence revenue, profitability, and compliance costs, adding an element of uncertainty to the Niva Bupa Health Insurance Company Limited IPO GMP.
The company's ambition to scale its infrastructure and expand service offerings demands significant capital, which may increase financial burdens, especially in a dynamic market.
India's health insurance sector is highly competitive, with multiple established players. This competition can put pressure on Niva Bupa's market share and operating margins, presenting a challenge for sustaining long-term growth.
The Niva Bupa Health Insurance Company Limited IPO presents an intriguing option for investors looking to enter the healthcare sector. Positioned as a comprehensive health insurance provider, the IPO reflects the company's established brand, broad customer base, and growth-focused strategies in India's competitive insurance market.
The Niva Bupa Health Insurance Company Limited IPO GMP has attracted attention, hinting at positive market sentiment toward the offering. Given the company's advances in leveraging technology for customer engagement and its strategic alliance with the Bupa Group, it demonstrates a robust approach to serving a diverse clientele.
For those considering IPO investments in upcoming IPOs, Niva Bupa offers an entry into a sector with both stability and growth potential in an evolving regulatory landscape.
Investing in the Niva Bupa Health Insurance IPO calls for a thoughtful approach, especially as it brings unique opportunities within the growing health insurance sector. As with any IPO investment, considering both the potential and the risks is key. For those looking at upcoming IPOs, it's essential to evaluate how Niva Bupa's market position, innovative offerings, and financial growth align with your investment goals. Thoroughly review the company's performance metrics and growth potential in light of your portfolio's objectives.
The Niva Bupa Health Insurance IPO price band is set between ₹70 and ₹74 per share, allowing investors to choose a price within this range.
Retail investors need to apply for at least 200 shares, requiring a minimum investment of ₹14,800 in the Niva Bupa Health Insurance Company Limited IPO.
The tentative listing date for the Niva Bupa Health Insurance IPO on the BSE and NSE is November 14, 2024.
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