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Niva Bupa Share Price: Investors who participated in the IPO can consider holding their shares, but should closely monitor the company’s performance and the broader market conditions, says a market analyst.
Niva Bupa Health Insurance IPO Listing.
Niva Bupa Share Price: Niva Bupa Health Insurance on Thursday made a positive debut in the stock market, with its shares listing at 6.08 per cent premium at Rs 78.5 apiece on the BSE as against its issue price of Rs 74. The shares later faced selling pressure and were trading at Rs 76.1 apiece on the BSE as on 10:38 am.
“Niva Bupa Health Insurance made a positive debut on the stock market. The performance was slightly better than expected,” said Shivani Nyati, head of wealth at Swastika Investmart Ltd.
She said that the IPO, which was moderately subscribed 1.9 times, reflected a cautious investor sentiment, potentially influenced by the company’s recent negative quarterly earnings. While Niva Bupa has shown strong growth and a positive turnaround in recent years, the short-term performance concerns and the IPO’s pricing seemed to have tempered investor enthusiasm.
“Investors who participated in the IPO can consider holding their shares, but should closely monitor the company’s performance and the broader market conditions. New investors may want to wait for a clearer picture of the company’s future trajectory before investing,” Nyati added.
The Niva Bupa Health Insurance Company was available for public subscription between November 7 and November 11. It got subscribed 1.80 times on the closing day of share sale on Monday, receiving bids for 31,13,62,800 shares against 17,28,57,143 shares on offer, as per NSE data.
The portion for Retail Individual Investors (RIIs) attracted 2.73 times subscription while the category for Qualified Institutional Buyers (QIBs) got subscribed 2.06 times. Non-Institutional Investors part fetched 68 per cent subscription.
Niva Bupa Health Insurance Company Ltd had mobilised Rs 990 crore from anchor investors.
The issue had a price band of Rs 70-74 per share. The Rs 2,200-crore IPO is a combination of fresh issuance of equity shares worth Rs 800 crore and an offer for sale of up to Rs 1,400 crore by promoters. The company reduced the issue size as it was earlier looking to raise Rs 3,000 crore.
The company intends to utilise the net proceeds from the fresh issuance towards boosting its capital base to strengthen solvency levels, and a portion will be used for general corporate purposes.
This is the second standalone health insurer to float an IPO after Star Health & Allied Insurance Company.
