The Niva Bupa Health Insurance IPO is the latest buzz in the Indian stock market. As it closes today, investors are left wondering whether they should jump in or wait. With the IPO already oversubscribed and a grey market premium (GMP) holding steady, it’s time to take a closer look at the details of this public offering. Let’s dive into everything you need to know about the Niva Bupa Health Insurance IPO GMP today and its market performance.
What Is the Niva Bupa Health Insurance IPO?
Niva Bupa Health Insurance Limited, a well-known player in the Indian insurance sector, launched its initial public offering (IPO) on November 7, 2024. This IPO, open until November 11, offers investors the chance to buy into one of India’s leading health insurance companies. But with only a day left to apply, is it still a good idea to get in on this offer?
IPO Subscription Status: A Strong Response
After two days of bidding, the Niva Bupa Health Insurance IPO has already been subscribed 1.17 times, indicating strong interest from investors. By mid-morning on day three (November 11), the subscription figures had risen to 1.26 times overall. Here’s how the different categories are performing:
- Retail Investors: 1.76 times subscribed.
- Non-Institutional Investors (NII): 0.45 times subscribed.
- Qualified Institutional Buyers (QIB): 1.50 times subscribed.
This shows strong demand from retail and institutional investors alike, even though the non-institutional segment is slightly lagging.
Niva Bupa Health Insurance IPO GMP Today: What’s the Latest?
One key factor for IPO investors is the Grey Market Premium (GMP), which gives an idea of how the stock is expected to perform once it’s listed. So, how’s the Niva Bupa Health Insurance IPO GMP today?
As of this morning, the GMP is holding steady at ₹5, which is unchanged from the weekend. Although this might seem modest, it’s important to note that market analysts are optimistic about a potential upward trend in the premium if there’s a positive shift in market sentiment. Despite the cautious approach in the secondary market, the GMP has remained in positive territory, which is a promising sign for those considering the IPO.
Could the Grey Market Premium Rise?
While a ₹5 premium may not seem overly exciting, the IPO market is unpredictable. Experts believe that the GMP could improve if Dalal Street sees a trend reversal or if broader market conditions become more favorable. For now, the steady GMP offers a conservative but positive outlook for the stock.
Financial Overview: Niva Bupa’s Performance
When evaluating an IPO, it’s essential to look at the company’s financial performance. Over the last few years, Niva Bupa Health Insurance has shown consistent growth in its gross written premium (GWP), but profitability has been volatile. Here are some key financial highlights:
- FY22: GWP of ₹2809.97 crore, net loss of ₹196.53 crore.
- FY23: GWP of ₹4073.03 crore, net profit of ₹12.54 crore.
- FY24: GWP of ₹5607.57 crore, net profit of ₹81.85 crore.
In the first quarter of FY25, the company recorded a loss of ₹18.82 crore on a GWP of ₹1464.18 crore. The health insurance sector typically sees slower growth in the first half of the fiscal year, with more significant activity in the second half. Despite the Q1 loss, the overall trend for Niva Bupa looks positive.
Expert Review: Is Niva Bupa IPO Worth Subscribing To?
According to experts at Bajaj Capital, this IPO is worth subscribing to for the long term. They note that Niva Bupa has seen steady growth in its premium collection, and while the company posted losses in some years, the overall financial health of the company is improving.
Similarly, Canara Bank Securities has recommended a ‘subscribe’ rating, highlighting the company’s diversified business model. Niva Bupa Health Insurance has a well-balanced channel mix of corporate agents, individual agents, and brokers, contributing evenly to its gross direct premium income (GDPI).
Final Thoughts: Should You Apply for the Niva Bupa Health Insurance IPO?
With just one day left to apply, you might be on the fence about whether to invest in the Niva Bupa Health Insurance IPO. Here’s a quick rundown of the pros and cons:
Pros:
- Steady GMP of ₹5 indicates positive market sentiment.
- Strong subscription rates from retail and institutional investors.
- Long-term growth potential, according to expert analysts.
Cons:
- The financial performance has been volatile, with recent losses.
- The NII segment is undersubscribed, which may raise concerns about high-net-worth interest.
Ultimately, if you’re looking for a long-term investment in a growing sector like health insurance, this IPO might be worth considering. But as always, weigh the risks and consider your financial goals before making a decision.
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