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Niva Bupa Health Insurance's initial public offering (IPO) saw strong investor interest, exceeding its target subscription on its third day of bidding. The IPO, which opened for subscription from November 7th to November 11th, garnered a 1.5 times subscription by November 11th, with investors bidding for 26.4 crore shares against the 17.3 crore available.
The retail individual investor (RII) category displayed particularly strong enthusiasm, with a subscription rate of 2.2 times. This signifies a strong belief in the company's prospects by individual investors. The qualified institutional buyer (QIB) segment also showcased significant interest, subscribing 1.8 times its allocation.
In contrast, the non-institutional investor (NII) category saw a comparatively lower subscription rate of 53 percent. While this signifies a more cautious approach from this segment, the overall positive response from the IPO reflects a favorable market sentiment towards Niva Bupa.
The Rs 2,200 crore IPO comprises both a fresh issue and an offer for sale. The fresh issue constitutes 10.81 crore shares worth Rs 800 crore, with the proceeds earmarked for strengthening Niva Bupa's capital position and general corporate purposes. The offer for sale comprises 18.92 crore shares aggregating to Rs 1,400 crore.
The IPO's price band has been set at Rs 70 to Rs 74 per share. The allotment is expected to be finalized on November 12th, with the tentative listing date set for November 14th. ICICI Securities, Morgan Stanley India, Kotak Mahindra Capital, Axis Capital, HDFC Bank, and Motilal Oswal Investment Advisors are the book-running lead managers for the IPO, while Kfin Technologies serves as the registrar.
Niva Bupa, a joint venture between the Bupa Group and Fettle Tone LLP, has been a significant player in the Indian health insurance sector since 2008. The company's strong performance and positive investor response to the IPO highlight its potential for future growth. This strong capital base will likely allow Niva Bupa to expand its offerings and services, further strengthening its position in the competitive Indian healthcare market.
Source: Niva Bupa IPO subscribed 1.5 times by Day 3, retail investors show strong interest