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Niva Bupa Health Insurance, a joint venture between the Bupa Group and Fettle Tone LLP, made a strong start to its initial public offering (IPO), garnering a 53% subscription on the opening day of bidding, November 7th. Investors showed enthusiasm for the offering, placing bids for 9.2 crore shares out of the 17.3 crore available. The IPO, aiming to raise Rs 2,200 crore, comprises both a fresh issue of 10.81 crore shares worth Rs 800 crore and an offer for sale of 18.92 crore shares, aggregating to Rs 1,400 crore. The price band for the IPO is set at Rs 70 to Rs 74 per share, with the allotment expected to be finalized on November 12th and the tentative listing date set for November 14th.
The robust subscription was driven primarily by Qualified Institutional Buyers (QIBs), who subscribed to 78% of their allotted portion. Retail Individual Investors (RIIs) also showed interest, subscribing to 53% of their portion. However, Non-Institutional Investors (NIIs) lagged behind, placing bids for only 12.2 lakh shares against the 4.7 crore shares reserved for them. This suggests that the IPO is attracting a strong appetite from institutional investors, potentially signifying their confidence in Niva Bupa's future prospects.
Niva Bupa intends to utilize the net proceeds from the fresh issuance to boost its capital base and address general corporate purposes. This signifies the company's focus on strengthening its financial position and expanding its operations within the Indian health insurance sector. With its strong backing from the Bupa Group and a solid track record of service, Niva Bupa aims to leverage the IPO to further establish its presence and capitalize on the growing demand for health insurance in India.
Source: Niva Bupa Health IPO sees 53% subscription on Day 1 driven by QIB interest