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About Niva Bupa Insurance IPO
Niva Bupa Insurance is preparing to launch a Rs 2,200 crore book. This IPO subscription is an amalgamation of a fresh issue of Rs 800 crore (10.81 crore shares) and an offer-for-sale of Rs 1,400 crore (18.92 crore shares). The company is set to debut on both the BSE and NSE.
Retail investors need to invest a minimum of Rs 14,800. Small NII investors require a minimum investment of Rs 207,200 for 2,800 shares, which is 14 lots. Large NII investors need a minimum investment of Rs 1,006,400 for 13,600 shares, which is 68 lots.
Kfin Technologies Ltd is serving as the registrar for the issue. ICICI Securities Ltd, Morgan Stanley India Company Pvt Ltd, Kotak Mahindra Capital Company Ltd, Axis Capital Ltd, Hdfc Bank Ltd and Motilal Oswal Investment Advisors Ltd are the book running lead managers in this IPO.
Niva Bupa Insurance IPO GMP Details:
The most recent GMP of the IPO is Rs 0, as of 7th November, 2024 09:30 AM. The IPO has a price band of Rs 74. The estimated listing price for Niva Bupa Insurance is Rs 74, reflecting a potential gain of 0% per share.
Niva Bupa Insurance IPO Details
| Niva Bupa Insurance IPO Opening Date and Closing Date | 7th November to 11th November |
| Face Value | Rs 10 per share |
| Price Band | Rs 70 to Rs 74 per share |
| Lot Size | 200 Shares |
| Total Issue Size | 297,297,297 shares (aggregating up to Rs 2,200 Cr) |
| Fresh Issue | 108,108,108 shares (aggregating up to Rs 800 Cr) |
| Offer for Sale | 189,189,189 shares (aggregating up to Rs 1,400 Cr) |
| Issue Type | Book-Built Type Issue |
| Listing At | NSE, BSE |
| Shareholding Pre-Issue | 1,700,122,985 |
| Shareholding Post Issue | 1,808,231,093 |
| Basis of Allotment | Tuesday, 12th November, 2024 |
| Refund Initiation | Wednesday, 13th November, 2024 |
| Credit of Shares in Demat | Wednesday, 13th November, 2024 |
| Listing Date | Thursday, 14th November, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on 11th November, 2024 |
| Draft Red Herring Prospectus | Link |
| Red Herring Prospectus | Link |
Niva Bupa Insurance Company Details
Niva Bupa Health Insurance originates from The Bupa Group and Fettle Tone LLP and has started offering health insurance services since 2008.
Similarly, Niva Bupa Health insures its customers through the Niva Bupa Health app and the Niva Bupa Health webpage.
The Company offers health insurance services directly to the individual and family market and also provides employer provided coverage to groups.
Noting the latest statistic published on 31st March 2024, Niva Bupa is active to around 14.73 million lives and has its services spread across 22 states and 4 union territories.
During the period from FY 2022 to FY 2024 the total GWP recorded by the company has increased with a CAGR of 41.27%, with retail health GWP also showing notable increase of 33.41%.
As of 31st March 2024, the telemarketing department comprised around 410 employees and applied various AI tools for scoring leads, suggesting products and managing customer relationships.
The technology team comprised 126 employees and was primarily responsible for developing digital assets, software and mobile apps.
Niva Bupa Insurance Lot Size, Shares, And Their Value:
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 200 | Rs 14,800 |
| Retail (Max) | 13 | 2,600 | Rs 192,400 |
| S-HNI (Min) | 14 | 2,800 | Rs 207,200 |
| S-HNI (Max) | 67 | 13,400 | Rs 991,600 |
| B-HNI (Min) | 68 | 13,600 | Rs 1,006,400 |
Investor categories and Niva Bupa Insurance shares offered:
| Investor Category | Shares Offered |
| QIB Shares Offered | Not less than 75.00% of the offer |
| Retail Shares Offered | Not less than 10.00% of the Offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Offer |
Niva Bupa Insurance Financials:
For the period ended on 31st March, 2024 & 31st March, 2023:
| Periods Ended | 31st Mar, 2024 | 31st Mar, 2023 |
| Assets | Rs 6,191.87 Cr. | Rs 3,876.57 Cr. |
| Revenue | Rs 4,118.63 Cr. | Rs 2,859.24 Cr. |
| Profit After Tax | Rs 81.85 Cr. | Rs 12.54 Cr. |
| Net Worth | Rs 2,049.59 Cr. | Rs 831.12 Cr. |
| Reserves and Supplies | Rs 1,282.02 Cr. | Rs 334.26 Cr. |
| Total Borrowing | Rs 250 Cr. | Rs 250 Cr. |
Should You Invest in the Niva Bupa Insurance IPO?
Financial Performance:
Revenue: The company generated Rs 1,124.90 crore in revenue during the period ended on 30th June, 2024.
Profit After Tax (PAT): The company recorded a loss of Rs 18.82 crore after taxes.
Net Worth: The company’s net worth, which represents the total value of the company’s assets minus its liabilities, is Rs 2,031.77 crore.
Financial Position:
Assets: The company’s total assets amounted to Rs 6,542.06 crore.
Reserves and Surplus: The company has accumulated reserves and surplus of Rs 1,282.44 crore.
Total Borrowing: The company has borrowed a total of Rs 250 crore.
Niva Bupa Insurance Key Performance Indicators (KPI) and their values:
The market capitalisation of Niva Bupa Insurance IPO is Rs 13,380.91 crore. As of 30th June, KPI and their values are:
| KPI | Values |
| Return on Net Worth (RoNW) | -0.92% |
| Price to Book Value (P/BV) | 6.14 |
| Debt/Equity | 0.12 |
Objectives of Niva Bupa Insurance IPO
The company plans to use the net proceeds to:
- Increase its capital base to improve solvency.
- Fund general corporate purposes.
Some major risks associated with the Niva Bupa Insurance IPO are:
- Health insurance rules govern a lot of the company’s business, and any alterations may affect its income and expenditure.
- Additional infrastructure and services entail huge amounts of capital investment that might pose some challenges to Niva Bupa.
- The health insurance market in India is characterised by the presence of various players, which is likely to impact the market share and profitability margins.
Frequently Asked Questions (FAQs)
What is the price band of Niva Bupa Insurance’s IPO?
Price band has been fixed at Rs 70 and Rs 74 per share.
What is the retail investor quota of Niva Bupa Insurance’s IPO?
A minimum of 10% shares shall go to the retail investors.
Where can I track Niva Bupa Insurance’s stock performance?
You can track it on Unicorn Signals after listing.
How can I apply for Niva Bupa Insurance’s Initial Public Offer?
Through your demat account or through your bank/financial institution during the IPO period.
When is the Last Date of IPO subscription for Niva Bupa Insurance?
The cut-off time is 11th November, 2024, at 5 PM; however, most brokers stop accepting applications between 1-3 PM.
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