Shares of the Niva Bupa Health Insurance Company Ltd. made a notable debut on November 14, listing at about a 6 percent premium.
Catch the action from today’s listing ceremony of Niva Bupa Health Insurance Company Limited from our Exchange @NSEIndia.#NSEIndia #listing #IPO #StockMarket #ShareMarket #NivaBupaHealthInsuranceCompanyLimited @ashishchauhan pic.twitter.com/6ptQ6rskZP
— NSE India (@NSEIndia) November 14, 2024
The stock was listed at Rs 78.14 per share on the NSE against the offer price of Rs 74, reflecting a premium of 5.59 percent.
On the BSE, the stock debuted at Rs 78.50 apiece, marking a 6.08 percent premium. The shares further rose 9.37 percent to Rs 80.94. The company’s market valuation stood at Rs 14,069.93 crore.
Congratulations Niva Bupa Health Insurance Company Limited on getting listed on NSE today. Niva Bupa Health Insurance Company Limited is a joint venture between the Bupa Group and Fettle Tone LLP that provides insurance in the health sector. The Public issue was of ~INR 2,200.00… pic.twitter.com/LBkyPqcSlN
— NSE India (@NSEIndia) November 14, 2024
Listing Of The Day | Niva Bupa: Will IREDA disallowing long-term premium booking in non-life insurance segment impact the company?
"On an IFRS basis, there will be no impact…" Krishnan Ramachandran of @niva_bupa details the impact
Watch the full interview -… pic.twitter.com/ipgAcnMsFT
— ET NOW (@ETNOWlive) November 14, 2024
The initial public offer (IPO) of Niva Bupa Health Insurance Company Ltd, formerly Max Bupa Health Insurance Company, was subscribed 1.80 times by the closing day of the share sale on Monday. Earlier, the company successfully mobilized Rs 990 crore from anchor investors. The Rs 2,200-crore issue had a price band of Rs 70-74 per share.
The company plans to utilize the net proceeds from the fresh issuance to boost its capital base and strengthen solvency levels. A portion will also be used for general corporate purposes.
Niva Bupa makes notable stock debut
Notably, Niva Bupa is the second standalone health insurer to float an IPO after Star Health & Allied Insurance Company. Throughout the trading day, the stock observed significant activity:
– 1:08 pm: The stock was trading at ₹75.55, down 3.31% from its opening price. – 10:47 am: The stock price was at ₹75.74, a decline of 3.07%.
The stock opened at ₹78.14 and touched a low of ₹75.11. – 11:06 am: The traded volume stood at 244.94 lakh with a traded value of ₹189.31 crore, pushing the total market capitalisation to ₹13,810.49 crore. Experts suggest that medium- to long-term investors might consider holding onto the shares, citing the company’s potential for growth driven by the increasing penetration of health insurance and a rising middle class.
The company benefits from strong parent backing, positioning it favorably for future expansion in the health insurance sector. Prashanth Tapse, Senior Vice President of Equities at Mehta Equities, remarked, “Niva Bupa’s listing aligns with expectations given the subscription demand and current market conditions. The company, one of the fastest-growing in the sector, saw a decent demand from retail investors.
Niva Bupa is strategically positioned to capitalize on India’s growing health insurance market due to increasing consumer awareness, medical inflation, and demand for quality healthcare.”
Shivani Nyati, Head of Wealth at Swastika Investment, advised, “Investors who participated in the IPO should consider holding their shares while closely monitoring the company’s performance and broader market conditions. New investors might want to wait for a clearer picture of the company’s future trajectory before investing.”
