Niva Bupa IPO subscribed 1.8 times by Day 3, retail investors show strong interest

Niva Bupa intends to utilise the net proceeds from the fresh issuance towards boosting its capital base.

Niva Bupa Health Insurance's IPO garnered a 1.8 times subscription on November 11, its third day of bidding, with investors bidding for 31.13 crore shares against the 17.3 crore available.

The retail individual investor (RII) category was subscribed 2.73 times, while the qualified institutional buyer (QIB) segment saw a subscription of 2.06 times its allocation. Meanwhile, demand in the non-institutional investor (NII) category was comparatively lower, with a subscription rate of 68 percent.

Niva Bupa's Rs 2,200 crore IPO consists of a fresh issue and an offer for sale (OFS). The fresh issue portion is valued at Rs 800 crore, translating to 10.81 crore shares, while the OFS covers 18.92 crore shares worth Rs 1,400 crore.

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With a price band of Rs 70 to Rs 74 per share, the IPO is open for subscription from November 7 to November 11. The allotment is set to be finalised on November 12, and the shares are expected to be listed on November 14.

Leading the IPO as book-running managers are ICICI Securities, Morgan Stanley India, Kotak Mahindra Capital, Axis Capital, HDFC Bank, and Motilal Oswal Investment Advisors, with Kfin Technologies as the issue's registrar.

On November 6, the IPO secured Rs 990 crore from anchor investors.

Funds raised from the Niva Bupa IPO will primarily support the company's capital base and cover general corporate expenses.

Niva Bupa, a partnership between the Bupa Group and Fettle Tone LLP, has operated in India’s health insurance market since 2008.

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