The going public (Initial Public Offering) of Niva Bupa Health Insurance Company opens up for bidding course of on Thursday, November 7. Investors can bid for the issue within the set value band of Rs 70-74 every for at least 200 fairness shares and its multiples after that. The Initial Public Offering will be subscribed until 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 provides insurance coverage coverage within the wellness trade. It provides an all pure proposal by giving shoppers accessibility to an in depth wellness group and resolution skills with its Niva Bupa Health cell utility and website.
The Rs 2,200 crore Initial Public Offering of Niva Bupa Health Insurance consists of a recent share sale of Rs 800 crore and an offer-for-sale (OFS) of roughly Rs 1,400 crore by its marketer entities- Bupa Singapore Holdings and Fettle Tone LLP. Net follows the issue can be used within the route of enhancement of its funding base to strengthen solvency levels and fundamental enterprise features.
Niva Bupa Health elevated Rs 990 crore utilizing help publication because it alloted 13,37,83,783 fairness shares at Rs 74 every. 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 help publication.
Gurugram- based mostly Niva Bupa Health Insurance Company had 14.73 million energetic lives assured since March 31 2024. The agency exists all through 22 states and 4 union areas in India for the reason that offered day. The whole GWP expanded at a CAGR of 41.27 p.c, whereas GWP from retail wellness boosted by 33.41 p.c from FY22 to FY24.
Niva Bupa Health Insurance Company reported a backside line of Rs 18.82 crore with a income of Rs 1,124.90 crore for the quarter upright June 30. The agency clocked an internet income of Rs 81.85 crore with a income of Rs 4,118.63 crore for the fiscal 12 months upright March 31, 2024. The agency will definitely regulate a whole market capitalization of Rs 13,380 crore.
Niva Bupa Health Insurance Company has truly scheduled 75 p.c of the online for the licensed institutional potential patrons (QIBs), whereas non-institutional financiers (NIIs) will definitely receive 15 p.c of the deal. Remaining 10 p.c of the web deal can be alloted within the route of the retail financiers.
ICICI Securities, Morgan Stanley India, Kotak Mahindra Capital, Axis Capital, HDFC Bank and Motilal Oswal Investment Advisors are information operating lead supervisors of the Niva Bupa Health Insurance Initial Public Offering, whereas Kfin Technologies is the registrar for the issue. Here’s what brokerage agency corporations claimed relating to the Initial Public Offering of Niva Bupa Health Insurance:
Anand Rathi Research
Rating: Subscribe for long-lasting
Niva Bupa Health Insurance is a noticeable medical insurance coverage firm inIndia They present a assorted sequence of things for shoppers, enhanced by a strong file in merchandise expertise. Their medical insurance coverage choices are made to fulfill the necessities of shoppers at each section 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 truly positioned itself as India’s third greatest and 2nd fastest-growing standalone wellness insurance coverage firm, attaining sturdy GWP growth The agency concentrates on high-LTV retail wellness objects with an enhancing customary ticket dimension and appreciable development in energetic lives assured, claimed Arihant Capital Markets.
Strategic development all through India and digital community growth, sustained by the e-agency design, extra reinforce its retail wellness market attain. At the highest band of Rs 74, the issue is valued at a PBV proportion of 6.1 occasions based mostly upon a FY24 BV of Rs 12.06 We are advising a ‘subscribe for long-term’ for this drawback,” it claimed.
Swastika Investmart
Rating: Subscribe with care
Niva Bupa Health Insurance is a number one gamer in India’s medical insurance coverage market. Among the fastest-growing enterprise within the trade. The agency revealed a good turn-around in FY23, although present revenues within the very first quarter of the prevailing financial stay within the adversarial. Initial Public Offering charges exhibits up moderately hostile, claimed Swastika Investmart, with excessive hazard financiers to subscribe for the issue.
Canara Bank Securities
Rating: Subscribe for long-term
Gross written prices (GWP) has truly expanded at a CAGR of 78.8 p.c to Rs 5,607.57 crore in FY24. It has truly completed a considerable turn-around in web income, increasing at a CAGR of 154.3 p.c, from a backside line of Rs 196.53 crore in FY22 to an internet income 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 company’s 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 rating.
StoxBox
Rating: Subscribe with long-term
Niva Bupa Health Insurance’s financial effectivity is almost certainly to be pushed by merchandise expertise, monetary funding in innovation and analytics to assist with the gross sales and upkeep of things and extra enhance visibility in present areas inside India, monetary funding in strengthening circulation networks and improve market share in retail medical insurance coverage, 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 Initial Public Offering brings financiers a risk to purchase amongst India’s fastest-growing standalone wellness insurance coverage corporations with a sturdy merchandise profile, calculated expertise and digital improvements. It has truly dealt with to reinforce the standard ticket dimension and enhance its circumstances proportion, exhibiting useful efficiency, 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 number one medical insurance coverage agency in India, dedicated to providing each Indian the self-confidence to entry the perfect well being care. The agency intends to achieve this with quite a lot of medical insurance coverage product or companies that help shoppers browse their well being care journey, giving accessibility to an in depth wellness group, 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 rating.
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