Niva Bupa Health Insurance IPO Day 3: Check subscription status

Niva Bupa Health Insurance’s initial public offering (IPO) has seen a mixed response from investors as it wraps up today, November 11. By 1:00 pm, the IPO was subscribed 1.46 times overall.

Retail Individual Investors (RIIs) led the demand, with their portion subscribed 2.17 times. Qualified Institutional Buyers (QIBs) followed closely, subscribing 1.77 times their allocated shares. However, the Non-Institutional Investors (NIIs) segment lagged, with only a 0.52 times subscription, indicating limited interest from high-net-worth investors.

The price band for the IPO is set between Rs 70-74 per share, with the offering consisting of a fresh issue worth Rs 800 crore and an offer-for-sale (OFS) of Rs 1,400 crore from promoters. Anchor investors had already brought in Rs 990 crore before the public offer commenced on November 7, signalling initial positive sentiment.

Promoters offload shares; allocation and listing dates to watch

Promoters Bupa Singapore Holdings and Fettle Tone LLP have put up shares worth Rs 350 crore and Rs 1,050 crore, respectively, as part of the OFS. Bupa Singapore currently holds a 62.19 per cent stake in the company, while Fettle Tone LLP owns 26.80 per cent. Notably, India Business Excellence Fund IV is the largest public shareholder, with a 2.81 per cent stake.

Post the IPO, the final allotment is set to be decided on November 12, and the shares are expected to list on the stock exchanges on November 14. Investors are watching closely as Niva Bupa holds a 17.29 per cent market share in India’s standalone health insurance sector.

For the financial year 2024, Niva Bupa reported a net profit of Rs 81.85 crore on a Gross Direct Premium Income (GDPI) of Rs 5,494 crore. The company's Q1 FY 2025 losses have narrowed significantly to Rs 18.8 crore, showing early signs of recovery.