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The initial public offering (IPO) of Niva Bupa Health Insurance Company Ltd, formerly Max Bupa Health Insurance Company, received a strong response on its first day, with subscriptions reaching 65% of the total shares offered. The IPO, priced between Rs 70 and Rs 74 per share, is scheduled to conclude on November 11th, 2024. This positive reception suggests investor confidence in the company's future prospects.
The strong subscription rates were driven by robust interest from various investor categories. Qualified Institutional Buyers (QIBs) subscribed to 79% of their allocated portion, indicating significant institutional confidence in the company's growth potential. Retail Individual Investors (RIIs) also demonstrated strong support, subscribing to 70% of their allotted shares. Non-institutional investors participated at a slightly lower rate, with 33% subscription.
Prior to the IPO, Niva Bupa Health Insurance Company Ltd had successfully raised Rs 990 crore from anchor investors, showcasing early investor interest in the company's offering. The IPO, which aims to raise a total of Rs 2,200 crore, includes a 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 initially aimed to raise Rs 3,000 crore but reduced the issue size.
The proceeds from the fresh issuance will be utilized to bolster the company's capital base, strengthening its solvency levels and enabling future growth initiatives. A portion of the funds will also be allocated to general corporate purposes. The IPO marks a significant milestone for Niva Bupa Health Insurance Company Ltd as it becomes the second standalone health insurer in India to go public after Star Health & Allied Insurance Company.
Several prominent financial institutions are involved in the IPO, acting as book-running lead managers. These include ICICI Securities, Morgan Stanley India Company, Kotak Mahindra Capital Company, Axis Capital, HDFC Bank, and Motilal Oswal Investment Advisors. The equity shares of Niva Bupa Health Insurance Company Ltd are expected to be listed on the BSE and NSE after the IPO concludes.