The going public (IPO) of Niva Bupa Health Insurance Company opens up for bidding process on Thursday, November 7. Investors can bid for the problem in the set price band of Rs 70-74 each for a minimum of 200 equity shares and its multiples after that. The IPO can be subscribed till Monday, November 11.
Incorporated in 2008, Niva Bupa Health Insurance Company is a joint endeavor in between the Bupa Group and Fettle Tone LLP that gives insurance policy in the wellness industry. It supplies an all natural proposal by giving clients accessibility to a detailed wellness community and solution abilities with its Niva Bupa Health mobile application and web site.
The Rs 2,200 crore IPO of Niva Bupa Health Insurance consists of a fresh share sale of Rs 800 crore and an offer-for-sale (OFS) of approximately Rs 1,400 crore by its marketer entities- Bupa Singapore Holdings and Fettle Tone LLP. Net follows the problem will be used in the direction of enhancement of its funding base to reinforce solvency degrees and basic business functions.
Niva Bupa Health elevated Rs 990 crore using support publication as it alloted 13,37,83,783 equity shares at Rs 74 each. Global financiers consisting of Morgan Stanley, Fidelity, Government Pension Fund Global, Templeton Emerging Markets Investment Trust, First Sentier Investors International, The Scottish Oriental Smaller Companies and others joined the support publication.
Gurugram- based Niva Bupa Health Insurance Company had 14.73 million energetic lives guaranteed since March 31 2024. The firm exists throughout 22 states and 4 union regions in India since the provided day. The total GWP expanded at a CAGR of 41.27 percent, while GWP from retail wellness boosted by 33.41 percent from FY22 to FY24.
Niva Bupa Health Insurance Company reported a bottom line of Rs 18.82 crore with a profits of Rs 1,124.90 crore for the quarter upright June 30. The firm clocked a web revenue of Rs 81.85 crore with a profits of Rs 4,118.63 crore for the fiscal year upright March 31, 2024. The firm will certainly regulate a complete market capitalization of Rs 13,380 crore.
Niva Bupa Health Insurance Company has actually scheduled 75 percent of the web for the certified institutional prospective buyers (QIBs), while non-institutional financiers (NIIs) will certainly obtain 15 percent of the deal. Remaining 10 percent of the internet deal will be alloted in the direction of the retail financiers.
ICICI Securities, Morgan Stanley India, Kotak Mahindra Capital, Axis Capital, HDFC Bank and Motilal Oswal Investment Advisors are guide running lead supervisors of the Niva Bupa Health Insurance IPO, while Kfin Technologies is the registrar for the problem. Here’s what brokerage firm companies claimed regarding the IPO of Niva Bupa Health Insurance:
Anand Rathi Research
Rating: Subscribe for long-lasting
Niva Bupa Health Insurance is a noticeable medical insurance company inIndia They provide a varied series of items for clients, enhanced by a solid record in item technology. Their medical insurance offerings are made to satisfy the requirements of clients at every phase of life, claimed Anand Rathi Research.
“The company aims to build a comprehensive, customer-focused health insurance platform and healthcare ecosystem, offering customers access to a variety of services, including wellness programs, doctor consultations, diagnostics, and medicine delivery. The company is valued at P/BV of 6.1 times. We believe that the issue is fully priced and recommend ‘subscribe for long term,” it claimed.
Arihant Capital Market
Rating: Subscribe for long-term
Niva Bupa Health Insurance has actually placed itself as India’s third biggest and 2nd fastest-growing standalone wellness insurance company, attaining durable GWP development The firm concentrates on high-LTV retail wellness items with an enhancing standard ticket dimension and considerable growth in energetic lives guaranteed, claimed Arihant Capital Markets.
Strategic growth throughout India and electronic network development, sustained by the e-agency design, more reinforce its retail wellness market reach. At the top band of Rs 74, the problem is valued at a PBV proportion of 6.1 times based upon a FY24 BV of Rs 12.06 We are advising a ‘subscribe for long-term’ for this problem,” it claimed.
Swastika Investmart
Rating: Subscribe with care
Niva Bupa Health Insurance is a leading gamer in India’s medical insurance market. Among the fastest-growing business in the industry. The firm published a favorable turn-around in FY23, though current revenues in the very first quarter of the existing monetary remain in the adverse. IPO rates shows up rather hostile, claimed Swastika Investmart, with high danger financiers to subscribe for the problem.
Canara Bank Securities
Rating: Subscribe for long-term
Gross written costs (GWP) has actually expanded at a CAGR of 78.8 percent to Rs 5,607.57 crore in FY24. It has actually accomplished a substantial turn-around in internet revenue, expanding at a CAGR of 154.3 percent, from a bottom line of Rs 196.53 crore in FY22 to a web revenue of Rs 81.85 crore in FY24, claimed Canara Bank Securities.
“Niva Bupa is a fast-growing health insurer in India, with innovative products, strong market presence, and a solid customer centric approach. However, the aggressive valuation, coupled with the companyâs loss-making status in Q1FY25, suggests that the IPO may be suited for investors with a high-risk appetite,” it included with a ‘subscribe’ for long-term score.
StoxBox
Rating: Subscribe with long-term
Niva Bupa Health Insurance’s monetary efficiency is most likely to be driven by item technology, financial investment in innovation and analytics to help with the sales and maintenance of items and more increase visibility in existing locations within India, financial investment in strengthening circulation networks and enhance market share in retail medical insurance, claimed StoxBox.
“Given its leading health insurance company, innovative expansion plans, technology-led automated approach and potential for profitability, we recommend a ‘subscribe’ rating for the issue with a medium to long-term investment perspective,” it included.
Mehta Equities
Rating: Subscribe for long-term
Mehta Equities thinks Niva Bupa Health Insurance IPO brings financiers a possibility to buy among India’s fastest-growing standalone wellness insurance companies with a durable item profile, calculated technology and electronic innovations. It has actually handled to enhance the typical ticket dimension and boost its cases proportion, showing functional performance, claimed Mehta Equities.
“With a CAGR of 41.27 per cent in GWP from FY22-24, Niva Bupa is strategically positioned to capitalize on India’s growing health insurance market. Hence, by looking at all the attributes we recommend investors to ‘subscribe’ the Niva Bupa Health Insurance Company IPO for long term perspective only,” it claimed.
Bajaj Broking
Rating: Subscribe for long-term
Niva Bupa Health Insurance is a leading medical insurance firm in India, committed to offering every Indian the self-confidence to access the very best health care. The firm intends to attain this with a variety of medical insurance product or services that assist clients browse their health care trip, giving accessibility to a detailed wellness community, claimed Bajaj Broking.
“If we annualize FY25 earnings to the post-IPO fully diluted equity base, the asking price results in a negative price-to-earnings (P/E) ratio. Based on FY24 earnings, the P/E ratio stands at 642.22. Consequently, the issue appears to be aggressively priced,” it claimed with a subscribe for long-lasting score.
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