Niva Bupa IPO Subscribed 65 % on Day 1 of Share Sale

The initial public offer of Niva Bupa Health Insurance Company Ltd, formerly Max Bupa Health Insurance Company, received a 65 per cent subscription on the first day of share sale on Thursday.

The initial share sale received bids for 11,18,61,400 shares against 17,28,57,143 shares on offer, as per NSE data.

The portion for qualified institutional buyers (QIBs) subscribed 79 per cent while the category for retail individual investors (RIIs) received 70 per cent subscription. Non-institutional investors part fetched 33 per cent of subscriptions.

Niva Bupa Health Insurance Company Ltd on Wednesday said it has mobilised Rs 990 crore from anchor investors.

The issue, with a price band of Rs 70-74 per share, will conclude on November 11.

The Rs 2,200-crore IPO is a combination of fresh issuance of equity shares worth Rs 800 crore and an offer for sale of up to Rs 1,400 crore by promoters. The company reduced the issue size as it was earlier looking to raise Rs 3,000 crore.

Under the OFS, Fettle Tone LLP will sell shares to the tune of Rs 1,050 crore, and Bupa Singapore Holdings Pte Ltd will offload shares valued at Rs 350 crore.

At present, Bupa Singapore Holdings Pte owns a 62.19 per cent stake, while Fettle Tone LLP holds a 26.8 per cent stake in the insurance firm.

The company intends to utilise the net proceeds from the fresh issuance towards boosting its capital base to strengthen solvency levels, and a portion will be used for general corporate purposes.

This will be the second standalone health insurer to float an IPO after Star Health & Allied Insurance Company.

ICICI Securities, Morgan Stanley India Company, Kotak Mahindra Capital Company, Axis Capital, HDFC Bank and Motilal Oswal Investment Advisors are the book-running lead managers to the offer.

The equity shares are proposed to be listed on the BSE and NSE.