Subscribe for Niva Bupa Health Insurance Company Ltd IPO; Geojit Financial Services

IPO

Geojit Financial Services, Niva Bupa Health Insurance Company Ltd

Niva Bupa Health Insurance Company (NBHICL) is a Standalone health insurer (SAHI) operates in India's health insurance sector, with a primary focus on the retail health market and group insurance. Established in 2008, it is a joint venture between Bupa Group and Fettle Tone LLP. The company serves 14.99 million active insured lives, utilizing a diversified distribution strategy through both direct and intermediated channels. In FY24, the retail segment accounted for ~ 70% of the overall Gross Written Premium (GWP). By August 2024, the company has a 17.3% market share in the Indian SAHI market, increasing from 13.9% in FY22 based on retail health gross direct premium income (GDPI).

Valuation and Outlook

At the upper price band of ₹74, NBHICL will be trading at a post-issue adj. P/B ratio of 4.8x for Q1FY25, which seems reasonable compared to its listed peers. Considering its strong parentage, improving market share, and profitability, we assign a “Subscribe” rating for long-term investment.

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Niva Bupa Health Insurance Company -071124 - geo