The Niva Bupa Health Insurance IPO is one of the most anticipated IPOs in the Indian market. With its strong growth trajectory and solid backing from global healthcare group Bupa, it has garnered significant attention from investors. This post delves into the key details, financials, and expert opinions to help you decide whether you should apply for the IPO or not.
Niva Bupa Health Insurance IPO Details
- Bidding Dates: November 7, 2024 – November 11, 2024
- Price Range: ₹70 – ₹74 per share
- Lot Size: 200 shares
- Minimum Investment: ₹14,000
- Issue Size: ₹2,200.00 Cr
- Listing Date: November 14, 2024
- Face Value: ₹10 per share
- Listing At: BSE, NSE
- Fresh Issue: ₹800.00 Cr
- Offer for Sale: ₹1,400.00 Cr
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About Niva Bupa Health Insurance
Niva Bupa Health Insurance, established in 2008, is backed by Bupa Singapore Holdings Pte. Ltd. and Bupa Investments Overseas Limited. With access to Bupa Group’s vast international healthcare experience, the company has rapidly expanded its footprint in the Indian market. As of March 31, 2024, Niva Bupa insures over 14.73 million active lives. It specializes in retail health insurance products and offers a variety of digital-first services to enhance customer experience.
Strengths of Niva Bupa Health Insurance
- Market Position: Niva Bupa is the third-largest and fastest-growing standalone health insurer (SAHI) in India, with a compounded annual growth rate (CAGR) of 41.37% from FY22 to FY24.
- Digital Transformation: The company has integrated a digital-first approach with 99.95% of new policies applied digitally and 95.5% of payments made online.
- Diversified Distribution Channels: Niva Bupa’s robust distribution network, including direct sales and digital channels, has helped it achieve impressive growth in the health insurance market.
- Strong Brand Backing: As a subsidiary of the global Bupa Group, the company benefits from vast international expertise in health insurance.
Risks to Consider
- Underwriting Risks: Niva Bupa’s profitability relies heavily on accurate risk management and pricing. Any misjudgment of medical expenses or claims frequency could affect its financial stability.
- Pandemic Exposure: Global pandemics, like COVID-19, could negatively impact the business and financials.
- Claims Management: A significant portion of Niva Bupa’s services relies on a network of hospitals. Failures in maintaining these relationships could harm the cashless claim system.
- Financial Losses: In FY22, the company incurred a loss of ₹196.52 crore. While it has made strides in profitability, future losses could hurt investor sentiment.
Niva Bupa Health Insurance Financials
| Revenue (₹ Cr) | Total Assets (₹ Cr) | Profit (₹ Cr) |
|---|---|---|
| 2022: ₹45.74 | 2022: ₹1,782 | 2022: -₹197 |
| 2023: ₹351 | 2023: ₹2,092 | 2023: ₹12.54 |
| 2024: ₹188 | 2024: ₹3,233 | 2024: ₹81.85 |
Niva Bupa Health Insurance IPO Lot Size
Investors can bid for a minimum of 200 shares in the IPO, and the investment details are as follows:
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 200 | ₹14,800 |
| Retail (Max) | 13 | 2,600 | ₹192,400 |
| S-HNI (Min) | 14 | 2,800 | ₹207,200 |
| S-HNI (Max) | 67 | 13,400 | ₹991,600 |
| B-HNI (Min) | 68 | 13,600 | ₹1,006,400 |
Should You Invest in Niva Bupa Health Insurance IPO?
Dilip Davda‘s Review: May apply
Niva Bupa is among India’s fastest-growing standalone health insurers with a substantial market share. The company has turned a corner from FY23, showing profitability in FY24. However, the IPO is priced on the higher side based on its earnings, and the market’s overall sentiment could affect its performance post-listing. While the company’s growth story is promising, investors should assess their risk appetite before investing. Investors with a medium- to long-term horizon might find it a suitable option, especially considering the company’s growth and digital-first approach.
Niva Bupa Health Insurance IPO Objectives
The funds raised from the IPO will be used for:
- Augmenting the company’s capital base to improve solvency levels.
- General corporate purposes.
Niva Bupa Health Insurance IPO Registrar
For queries related to the IPO, investors can reach out to:
- Registrar: Kfin Technologies Limited
- Phone: 04067162222, 04079611000
- Email: nivabupa.ipo@kfintech.com
- Website: Kfintech IPO Status
Conclusion
The Niva Bupa Health Insurance IPO offers a solid opportunity for investors looking to invest in a growing player in the health insurance market. However, given its aggressive pricing, potential risks, and the company’s historical financial challenges, it’s essential to assess whether it fits your investment strategy. Investors with a medium- to long-term horizon might find it a suitable option, especially considering the company’s growth and digital-first approach.