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Niva Bupa IPO: Things Smart Investors Need to Know Before Investing

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Niva Bupa Health Insurance Company Limited is a trusted name in the health insurance sector, combining global expertise with local insights. Established in 2008 as a joint venture between Bupa Group and Fettle Tone LLP, Niva Bupa provides a diverse range of products designed to meet the healthcare needs of individuals, families, and corporate entities. Its retail and group insurance products cater to diverse demographics across 22 states in India, making it a well-placed player in the industry.

With a CAGR of 41.27% in gross written premium (GWP) from FY 2022 to FY 2024, Niva Bupa is poised for continued growth. Supported by a robust technology infrastructure, the company ensures seamless customer service and product offerings through digital platforms. This IPO positions the company to strengthen its market share and expand its reach further, making it a key player in India’s health insurance landscape.

Niva Bupa IPO Details and Objectives

IPO Date

November 7, 2024, to November 11, 2024

Issue Size

297.3 million shares (₹2,200 crore)

Fresh Issue

10.81 crore shares (₹800 crore)

Offer for Sale

18.92 crore shares (₹1,400 crore)

Price Band

₹70 - ₹74 per share

Minimum Lot Size

200 shares (₹14,800 minimum investment)

Listing Exchanges

BSE and NSE

The IPO aims to strengthen Niva Bupa’s capital base, supporting its solvency ratios and fueling corporate growth.

Timeline of Niva Bupa IPO

Event

Date

IPO Opening Date

November 7, 2024

IPO Closing Date

November 11, 2024

Basis of Allotment

November 12, 2024

Refund Initiation

November 13, 2024

Shares Credited to Demat

November 13, 2024

Listing Date

November 14, 2024

Pricing & Lot Size of Niva Bupa IPO

  • Price Band: ₹70 to ₹74 per share
  • Minimum Lot Size: 200 shares per lot, requiring a minimum investment of ₹14,800.
  • High-Investor Tiers: S-HNIs can apply with a minimum of 14 lots, while B-HNIs require a minimum of 68 lots.

How to Apply for the Niva Bupa IPO?

  • Online Application Process:
    • Login to your Demat account with Bajaj Broking.
    • Navigate to the IPO section and select 'Niva Bupa IPO.'
    • Enter the number of lots you wish to apply for.
    • Confirm the bid at the price within the band and submit.
    • Ensure UPI mandate confirmation by 5 PM on the closing date for successful application.

Financial Health and Performance

  • Key Financial Metrics:
    • Total Assets (as of June 30, 2024): ₹6,542.06 crore
    • Revenue (FY 2024): ₹4,118.63 crore
    • Profit After Tax (FY 2024): ₹81.85 crore
  • Growth Prospects:
    • CAGR of 41.27% in GWP from FY 2022-24.
    • Robust customer acquisition with 14.73 million insured lives as of March 2024.

Investment Risks and Opportunities

  • Potential Risks:
    • Competitive market with multiple health insurance providers.
    • Dependency on regulatory changes in the healthcare sector.
  • Opportunities:
    • Low penetration of health insurance in India, offering room for expansion.
    • Growing healthcare awareness among the middle class.

Key Performance Indicator (KPI)

KPI

Value

Debt/Equity

0.12

Return on Net Worth (RoNW)

-0.92

Price-to-Book Value (P/BV)

6.14

Niva Bupa IPO Registrar & Lead Managers

Role

Name

Registrar

KFin Technologies Limited

Lead Managers

ICICI Securities, Morgan Stanley, Kotak Mahindra, Axis Capital, HDFC Bank, Motilal Oswal

Conclusion

Niva Bupa’s IPO provides an intriguing opportunity for investors keen on India’s evolving health insurance market. With the backing of a global parent, an expanding portfolio, and a focus on digital transformation, this IPO could offer both growth and diversification to an investor's portfolio.

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Frequently Asked Questions

Who is the CEO of Niva Bupa Health Insurance Company Ltd?

Answer Field

The CEO of Niva Bupa Health Insurance Company Ltd is Krishnan Ramachandran. With extensive experience in the health insurance sector, he leads the company’s strategic initiatives and growth efforts across India.

When will the Niva Bupa IPO open for subscription?

Answer Field

The Niva Bupa IPO opens for subscription on November 7, 2024, and closes on November 11, 2024. Investors can apply during this period to secure a chance at an allotment.

What is the price band for the Niva Bupa IPO, and how was it determined?

Answer Field

The price band for the Niva Bupa IPO is set between ₹70 to ₹74 per share. This range was determined based on the company's valuation and recent share placements, ensuring competitive pricing for potential investors.

What are the key risks and rewards of investing in the Niva Bupa IPO?

Answer Field

Investing in the Niva Bupa IPO offers potential rewards from the growing health insurance market. However, risks include market competition and reliance on regulatory frameworks that could impact profitability.

What documents should I review before investing in the Niva Bupa IPO?

Answer Field

It is recommended to review the Red Herring Prospectus (RHP), recent financial statements, and market performance indicators to understand the company's financial health and associated risks.

Will Niva Bupa IPO pay dividends?

Answer Field

Dividend payments, if any, will be based on the company's profitability post-listing and

its board's decisions. Investors should refer to future financial announcements for any dividend declarations.

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