Niva Bupa Health Insurance IPO is set to list today, November 14. Ahead of the listing, the Grey Market Premium (GMP) suggests a subdued performance, with stock market experts anticipating a muted debut for the shares.
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Niva Bupa Health Insurance IPO Listing: The shares of Niva Bupa Health Insurance are scheduled to make their debut on the stock market today, November 14. Following a satisfactory level of demand during the initial public offering (IPO), the listing date has been confirmed for today.
The Niva Bupa Health Insurance IPO was open for subscriptions from November 7 to November 11, with the allotment process concluding on November 12. Consequently, the listing date is set for today, November 14.
According to a notice from the Bombay Stock Exchange (BSE), “Trading Members of the Exchange are hereby informed that effective from Thursday, November 14, 2024, the equity shares of NIVA BUPA HEALTH INSURANCE COMPANY LIMITED shall be listed and admitted to dealings on the Exchange in the list of ‘B’ Group of Securities.” Niva Bupa Health Insurance will participate in the Special Pre-open Session (SPOS) on Thursday, with trading commencing at 10:00 AM on both the BSE and NSE.
As the share listing approaches, investors are closely monitoring the trends in the Niva Bupa Health Insurance IPO grey market premium (GMP) to assess the anticipated listing price.
Current indications from the Niva Bupa Health Insurance IPO GMP and insights from stock market analysts suggest a subdued performance for the shares upon listing.
Niva Bupa Health Insurance IPO GMP Today
The performance of Niva Bupa Health Insurance shares in the unlisted market continues to be subdued. Stock market analysts report that the current Grey Market Premium (GMP) for Niva Bupa Health Insurance’s initial public offering (IPO) stands at ₹1 per share. This suggests that in the grey market, the shares of Niva Bupa Health Insurance are being traded at a premium of ₹1 above their issue price.
Niva Bupa Health Insurance IPO Listing price
The current Grey Market Premium (GMP) for the Niva Bupa Health Insurance IPO indicates an estimated listing price of ₹75 per share, reflecting a 1.3% premium over the IPO price of ₹74.
Niva Bupa Health Insurance, a significant entity in India’s health insurance landscape, is preparing for its initial public offering. The IPO has garnered a subscription rate of 1.9 times, yet the prevailing grey market premium of ₹1 (1.35%) points to a lackluster market sentiment. The company has shown robust growth and a favorable turnaround in recent years; however, the negative earnings reported in the first quarter of the current fiscal year raise concerns regarding its short-term outlook. Furthermore, the pricing of the IPO appears somewhat aggressive, which may affect its performance upon listing, according to Shivani Nyati, Head of Wealth at Swastika Investmart Ltd. While the long-term outlook for Niva Bupa in the expanding Indian health insurance market remains optimistic, Nyati cautions investors to be wary of the current market dynamics and the company’s recent financial results.
Prashanth Tapse, Senior Vice President of Research at Mehta Equities Ltd, observed that despite the prevailing market selloff, the Niva Bupa Health Insurance IPO, recognized as the fastest-growing company in the sector, attracted considerable interest from retail investors, achieving a subscription rate of 2.88 times.
“Taking into account various factors, including the solid subscription demand and the prevailing market sentiments, there is a significant likelihood of a flat listing within a range of plus or minus 5% of the issue price. Investors who have been allotted shares should not anticipate substantial listing gains due to market pressures,” Tapse remarked. He recommends that long-term investors consider holding the stock despite potential short-term volatility and competitive challenges in the sector. For those who did not receive allotments, he suggests accumulating shares if the listing price is close to the issue price.
Niva Bupa Health Insurance IPO Details
The bidding process for the Niva Bupa Health Insurance Initial Public Offering (IPO) began on Thursday, November 7, and concluded on Monday, November 11. The allotment for the IPO was determined on November 12, with the listing date set for November 14. Shares of Niva Bupa Health Insurance will be available on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
The price range for the Niva Bupa Health Insurance IPO was established between ₹70 and ₹74 per share. At the upper limit of this range, the company successfully raised ₹2,200 crore through a book-built issue, which included a fresh issuance of 10.81 crore equity shares valued at ₹800 crore, alongside an offer for sale (OFS) of 18.92 crore shares totaling ₹1,400 crore. The overall subscription for the Niva Bupa Health Insurance IPO reached 1.8 times. Specifically, the retail segment of the public offering was subscribed 2.73 times, while the Non-Institutional Investors (NII) segment saw a subscription of 0.68 times, and the Qualified Institutional Buyers (QIBs) segment was subscribed 2.06 times.
The book-running lead managers for the Niva Bupa Health Insurance IPO include ICICI Securities, Morgan Stanley India Company Pvt Ltd, Kotak Mahindra Capital Company, Axis Capital, HDFC Bank, and Motilal Oswal Investment Advisors. Kfin Technologies serves as the registrar for the IPO.
