Niva Bupa Health Insurance IPO: Price & GMP

Niva Bupa Health Insurance IPO-Complete Overview

Niva Bupa Health Insurance IPO a Mainboard IPO is a book-built issue of Rs.2,200 crore (29,72,97,297 Shares) by Niva Bupa Health Insurance Ltd. was established in 2008 as a collaboration between Bupa Group and Fettle Tone LLP. It sells health insurance.

This company introduces its full suite through its complete health ecosystem and service capabilities on the website for the Niva Bupa Health website. It is also available in a mobile application.

The company's offerings can be generally divided into:

1. Retail goods are intended for both families and individuals.

2. Collective goods aimed at employers and workers.

• The company had 14.73 million active life insured as of March 31, 2024.

• The corporation operates in 22 Indian states and 4 UTs as of March 31, 2024.

• The total GWP increased at a CAGR of 41.27% between FY 2022 and FY 2024, whereas GWP from retail grew by 33.41%.

This new IPO is to be launched on 07 November 2024, and the initial public offering of this upcoming IPO will end on 11 November 2024.

Niva Bupa Health Insurance IPO Details

The Rs.2,200 crore Niva Bupa Health IPO comprises a fresh Issue of 10.81 crore Shares (Rs.800 Cr) and an offer for sale (OFS) of 18.92 crore Shares (Rs.1400 Cr).

The Niva Bupa IPO date is from 07 November to November 11, 2024. The IPO listing date is on Thursday, November 14, 2024, and it will be listed at BSE and NSE. Niva Bupa IPO price band is Rs.70 to Rs.74 for each Share.

Niva Bupa IPO Shareholders' quota

This Insurance IPO's shareholder quota is 10% allocated to retail investors, 75% to institutional investors (QIB), and 15% to non-institutional investors (NII).

If You want to apply for the IPO,  Click Here to Open a Demat Account.

 

Niva Bupa Health Insurance: Product Portfolio

 

 

Company Financial

The company’s revenue grew by 44.05% and PAT increased by 552.73% between FYs ended 31 March 2024 and 31 March 2023.

(Amount in Crore)

 

Revenue Bifurcation

Below is the revenue breakdown for various activities.

(Amount in million)

 

Customers-wise Revenue Bifurcation

 (Values in millions)

 

 

Segment-wise Revenue Bifurcation 

(Values in millions)

 

Revenue Bifurcation

(Values in millions)

 

Geography-wise Revenue Bifurcation

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Expansion of its capital base to boost levels of solvency.

• Corporate Purposes.

 

Peers of Niva Bupa Health Insurance Ltd.

Evaluation

Niva IPO price is between Rs.70 to Rs.74 for each Share.

Evaluation of P/E Ratio

Considering the period of FY 2024, with an EPS of Rs.0.51 from the last year, the resulting P/E ratio is 145.09x.

Considering the weighted EPS of Rs.0.05 for the last three years, the P/E ratio is 1480x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 38.60x.

 

IPO's Strengths 

• Granular retail health insurer that prioritizes profitability, capital efficiency, and strong GWP growth.

• Its wide range of products for clients is supported by its history of developing innovative products.

• An automated, technology-driven approach to customer service.

• The parent company and brand of Bupa, which is linked to health insurance and healthcare.

• Its expertise in claims and provider management.

• Pan-India distribution that is multi-channel diverse and empowers distribution partners through technology.
  
  

IPO’s Weaknesses

• The ability of the business to control underwriting risks and set product prices effectively determines how profitable it will be.

• The health insurance sector accounts for a sizable amount of business.

• The business is subject to stringent oversight and regulatory examinations.

• The company depends on its intermediary channels of distribution.

• The company has lost money as a loss.  

 

Niva Bupa IPO GMP

Niva Bupa Health Insurance IPO GMP today is Rs.0 as of 04 November 2024. With a price of Rs.74 per Share, the estimated IPO listing price is Rs.74 when writing this information

 

Niva Bupa Health Insurance IPO Timetable (Tentative)

The IPO open date is from November 07 to November 11, 2024, with IPO allotment on November 12, 2024, refund initiation on November 13, 2024, and listing on Monday, November 14, 2024.

 

 

Niva Bupa Health Insurance IPO Details 

The IPO with a face value of Rs.10 per Share offers a total issue size of 297,297,297 Shares and will be listed at BSE and NSE.

Niva Bupa Health Insurance IPO Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (200 Shares) amounting to Rs.14800 and 13 Lots (2600 Shares) amounting to Rs.1,92,400 respectively, while for HNI investors, the minimum Lot is 14 (2800 Shares) amounting to Rs.2,07,200.

 

Niva Bupa Health Insurance IPO Reservation

Promoters and Management of Niva Bupa Health Insurance Ltd. 

• Bupa Singapore Holdings Pte. Ltd.

• Bupa Investments Overseas Limited.

Niva Bupa Health Insurance IPO Lead Managers

• ICICI Securities Limited

• Morgan Stanley India Company Pvt Ltd.

• Kotak Mahindra Capital Company Limited.

• Axis Capital Limited.

• Hdfc Bank Limited.

• Motilal Oswal Investment Advisors Limited.
  
  

Dividend Policy

The company has not paid any dividends in the last three fiscal.

Conclusion

This can provide an opportunity for many investors to get themselves exposure in the growing Indian health insurance market. In any case, the revenues show an impressive growth trend with extensive product offerings from it. The brand reputation too has been well-established with potential. However, with such losses in recent years, P/E ratios do go up, which signifies there could be some limitations associated with the company.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

DISCLAIMER:

 This blog is NOT any buy or sell recommendation. No trading advice/suggestion is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions.  

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