Niva Bupa IPO sees moderate demand with weak overall subscription

Niva Bupa Health Insurance Company has launched its Initial Public Offering (IPO), with the subscription window open from November 7, 2024, to November 11, 2024.

Niva Bupa IPO sees moderate demand with weak overall subscription

The company aims to raise approximately ₹2,200 crore through this IPO, which includes a fresh issuance of ₹800 crore in equity shares and an offer-for-sale of ₹1,400 crore by its promoters. The price band for the shares is set between ₹70 and ₹74, with retail investors able to apply for a minimum of 200 shares, totaling around ₹14,800 at the upper price band. As of November 10, 2024, the IPO has been subscribed 1.17 times, with bids received for 20,26,82,400 shares, surpassing the 17,28,57,143 shares on offer. The retail segment has shown stronger interest, with 14,17,65,000 shares bid, reflecting a subscription rate of over 1.50 times in this category. However, the overall demand has been weaker than anticipated.

Still few subscribers

The Grey Market Premium (GMP) for the Niva Bupa IPO is currently reported at ₹3, suggesting a premium of approximately 4.04% over the issue price. This indicates a slight willingness among investors to pay more than the upper cap price of ₹74 per share in the grey market. However, some reports note that unlisted shares have been trading at zero GMP, indicating a lack of confidence among investors regarding potential listing gains.