Niva Bupa Health Insurance is the second standalone health insurance (SAHI) IPO in recent times after Star Health. The fast-growing company in a fast-growing segment does offer a strong proposition for investors for long-term growth. But the valuation is at a premium, which transfers the risk of growth to investors at the current levels. The company reported ₹82 crore PAT in FY24 and the upper band of IPO values it at ₹13,520 crore or 165 times PE, which is a premium to Star Health (33 times PE). The nascent operator with lower profitability has inflated PE multiples, but on a Price to book ratio is similar to the industry at 4.5 times its FY24 book value (Star Health 4.4 times). We recommend investors track the profitability expansion over the years before investing in the stock. The IPO has a fresh issue of ₹800 crore and OFS of ₹1,400 crore from promoters Bupa Singapore and Fettle Tone (True North).
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Niva Bupa Health Insurance IPO Day 3 Highlights: Niva Bupa IPO subscribed 1.80 times
Niva Bupa Health Insurance IPO, Niva Bupa IPO GMP Updates November 11, 2024:Niva Bupa Health Insurance IPO, formerly Max Bupa Health Insurance Company, got subscribed 1.80 times on the closing day of share sale on Monday. The initial share sale got bids for 20,26,82,400 shares against 17,28,57,143 shares on offer, as per NSE data. Niva Bupa Health Insurance Company Ltd on Wednesday said it has mobilised Rs 990 crore from anchor investors.