The IPO of Niva Bupa Health Insurance has opened for subscription from today i.e. Thursday (7 November 2024). Through this, the company aims to raise about Rs 2,200 crore. The company has raised about Rs 990 crore from anchor investors even before the IPO opens. These include major foreign and domestic investors like Amansha Holdings, Julia Investments, Nippon Life, Tata Balance Advantage Fund, Axis Mutual Fund and Morgan Stanley Investment Fund.

Niva Bupa Health Insurance is considered to be one of India's largest and fastest growing standalone health insurance companies, which has achieved gross direct premium income of Rs 5,494.4 crore in the financial year 2024.

Price band and lot size
The price band of this IPO has been fixed at Rs 70-74 per share. Investors can bid in 200 shares and its multiples in one lot. The company will issue new shares worth Rs 800 crore under this issue, while the promoters will sell shares worth Rs 1,400 crore through Offer for Sale (OFS). Under OFS, Fetal Tone is selling shares worth Rs 1,050 crore and Bupa Singapore is selling shares worth Rs 350 crore.

What are the experts saying?
Mehta Equities has advised to subscribe to the IPO for the long term. The company has recently registered good growth in its AUM and net premium. In FY24, the company's net premium grew by 43.1% and AUM by 62.2%, while profit increased from Rs 12.25 crore to Rs 81.85 crore. However, experts believe that the company's valuation may be a bit expensive at the upper price band, but it is advisable to subscribe for the long term.

Brokerage Anand Rathi has also described the company's product portfolio and innovation as strong, which is designed to meet the needs of customers at different levels. He believes that Niva Bupa's product range has been designed keeping in mind the health care needs of people of all ages. The brokerage firm has also advised to subscribe to the IPO for the long term. Company's structure and objective Niva Bupa plans to use the funds raised from the IPO to increase its capital base and strengthen solvency levels. It is the second standalone health insurance company in India after Star Health and Allied Insurance, which is coming up with an IPO. Market share and performance The insurance company has achieved 17.29% market share in the standalone health insurance market, up from 16.24% last year. The company's gross written premium (GWP) grew at a CAGR of 41.27% in FY24. However, the company incurred a loss of Rs 18.8 crore in June 2024, down from Rs 72.2 crore last year. IPO highlights About 75% of this IPO has been reserved for qualified institutional buyers, 15% for non-institutional buyers and 10% for retail investors. Niva Bupa's IPO allotment is expected to be finalized on November 12 and the company will be listed on BSE and NSE on November 14. If you are a long-term investor and want to invest in the health insurance sector, then Niva Bupa's IPO can prove to be a good addition to your portfolio.