Niva Bupa lists at 6% premium; shares debut at Rs 78.50 on BSE

Niva Bupa Health Insurance Company had a positive listing debut on November 14, 2024, with its shares trading above the IPO issue price on both the NSE and BSE. The stock opened at Rs 78.14 on the NSE, a premium of 5.59 percent, while on the BSE, it quoted Rs 78.50, marking a 6.08 percent jump from the issue price of Rs 74.

Solid listing gains

Niva Bupa’s IPO, with a price band set between Rs 70 and Rs 74 per share, managed to raise Rs 2,200 crore. Investors had shown keen interest during the three-day subscription window from November 7 to November 11, 2024. The minimum investment required was Rs 14,800 for one lot of 200 shares.

The strong listing was driven by positive investor sentiment towards the company’s growth prospects in the health insurance sector, supported by its robust business model and partnership between Fettle Tone LLP, an Indian private equity firm, and Bupa Singapore Holdings Pte. Limited.

Analysts have pointed out that Niva Bupa's solid listing and healthy premium reflect strong market confidence in the expanding health insurance sector. However, investors will now watch for the company’s upcoming earnings reports and the management's strategy to capture a growing share in the competitive insurance space.

Overall, the market debut positions Niva Bupa well for future growth, with analysts optimistic about its potential given the increasing demand for health insurance in India.

Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., shared her view on Niva Bupa Health Insurance's IPO performance, says "Niva Bupa Health Insurance made a positive debut on the stock market, listing at Rs 78.14, a 5.5 per cent premium over its issue price of Rs 74. This performance was slightly better than expected. 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."