Niva Bupa Health Insurance lists at ₹78.14 on NSE, surging 5.5% above IPO price

Niva Bupa Health Insurance shares had a strong debut on November 14, listing at ₹78.14 on the NSE, 5.5% above the issue price of ₹74. On the BSE, shares listed at ₹78.5, a 6.08% premium from the IPO price. The company’s ₹2,200 crore IPO opened from November 7 to 11, with shares priced between ₹70-74 each.

The IPO received strong demand, oversubscribed by 1.9 times. Bids for 31.13 crore shares were placed against the 16.3 crore shares on offer. The retail segment was especially strong, subscribed 2.88 times, while the non-institutional investor category was under-subscribed, at 0.71 times. The QIB portion was subscribed 2.17 times.

Niva Bupa’s IPO comprised a fresh issue of 10.81 crore shares worth ₹800 crore, along with an offer for sale of 18.92 crore shares, totaling ₹1,400 crore. The company raised ₹990 crore from anchor investors on November 6. Retail investors could apply for a minimum of 200 shares, requiring an investment of ₹14,800.

Proceeds from the IPO will strengthen Niva Bupa’s capital base, aiming to boost solvency levels and support general corporate purposes. The offer reserved 30% for qualified institutional bidders, and 10% each for non-institutional investors and retail investors.

Most brokerages recommended subscribing to the IPO. Anand Rathi suggested a long-term investment, citing Niva Bupa’s plans to expand its health insurance ecosystem with wellness programs, doctor consultations, and home delivery services. Despite a seemingly high valuation, Anand Rathi maintained a positive outlook.

In contrast, Swastika Investmart recommended the IPO for high-risk investors due to concerns over pricing and early fiscal-year earnings.

Niva Bupa’s debut marks a significant milestone in the growing Indian health insurance sector, as the company aims to expand and innovate its offerings.