Niva Bupa Health Insurance IPO Anchor Allocation at 45%

Niva Bupa Health Insurance IPO saw a significant anchor allocation response, with 45% of the total IPO size subscribed by anchor investors. Out of 297,297,298 shares on offer, anchors picked up 133,783,783 shares, demonstrating strong market confidence. The anchor allocation details were reported to the stock exchanges on 6th November 2024, just ahead of the IPO opening on 7th November 2024.

The book-built issue of ₹2,200.00 crores comprises a fresh issue of 108,108,108 shares aggregating to ₹800.00 crores and an offer for sale of 189,189,189 shares aggregating to ₹1,400.00 crores. The price band is set at ₹70 to ₹74 per share, with a face value of ₹10 per share. This includes a share premium of ₹64 per share at the upper end of the price band.

The anchor allocation process, which took place on 6th November 2024, saw strong participation from institutional investors. The entire anchor allocation was made at the upper end of the price band, ₹74 per share, indicating robust demand and confidence in the company's prospects.

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After the anchor allocation, the overall allocation of the Niva Bupa Health Insurance IPO looks as follows:

Notably, the 133,783,783 shares allocated to anchor investors were reduced from the original Qualified Institutional Buyers (QIB) quota. The QIB quota has been adjusted to ensure that the overall allocation to QIBs, including the anchor portion, remains within regulatory limits.

The lock-in period for anchor investors is an important aspect of the allocation. For Niva Bupa Health Insurance IPO, the lock-in details are as follows: 

• Lock-in Period (50% Shares): 12th December 2024 
• Lock-in Period (Remaining Shares): 10th February 2025

This lock-in period ensures that anchor investors maintain their investments for a specified duration, stabilising the stock price after listing.

Also read Niva Bupa Health Insurance IPO 2024: Key Details, Growth Prospects

Anchor Investors in Niva Bupa Health Insurance IPO

Anchor investors are typically large institutional investors allotted shares in an IPO before it opens to the public. The anchor allocation process is a crucial part of the IPO, as it helps in price discovery and builds confidence among retail investors. The strong response from anchor investors often sets a positive tone for the public issue and can influence the overall subscription levels.

On 6th November 2024, Niva Bupa Health Insurance IPO completed the bidding for its anchor allocation. There was a robust response as the anchor investors participated in the book-building process. A total of 133,783,783 shares were allotted to 32 anchor investors. The allocation was done at the upper IPO price band of ₹74 per share, resulting in an overall anchor allocation of ₹990.00 crore. The anchors have already absorbed 45% of the total issue size of ₹2,200.00 crore, indicating strong institutional demand.

Out of the total allocation of 133,783,783 Equity Shares to the Anchor Investors, 37,161,800 Equity Shares (i.e., 27.78% of the total allocation) were allocated to 6 domestic mutual funds through 8 schemes.

Key IPO Details: 

• IPO Size: ₹2,200.00 crores Shares 
• Allocated to Anchors: 133,783,783 
• Anchor Subscription Percentage: 45% 
• Listing Date: 14th November 2024 
• IPO Opening Date: 7th November 2024

About Niva Bupa Health Insurance Company Limited and How to Apply for Niva Bupa Health Insurance IPO 

Incorporated in 2008, Niva Bupa Health Insurance Company Limited is a joint venture between the Bupa Group and Fettle Tone LLP that provides health insurance. The company offers a holistic proposition by providing customers with access to a comprehensive health ecosystem and service capabilities through its Niva Bupa Health mobile application and website. 

The company's products are broadly categorised into Retail products designed for individuals and families and Group products intended for employers and employees. As of March 31 2024, the company had 14.73 million active lives insured. As of 31st March 2024, the company is present across 22 states and four union territories in India. 

From Fiscal Year 2022 to Fiscal Year 2024, the overall GWP grew at a CAGR of 41.27%, while GWP from retail health increased by 33.41%. As of 31st March 2024, the company's technology function had 126 employees who focused on developing digital assets, software, and mobile applications.

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To apply for IPO through 5paisa, you can follow these steps:

1. Log in to your 5paisa  account 
2. Go to the IPO section and select the IPO you want to invest in 
3. Enter the number of lots and price you want to apply for 
4. Enter your UPI ID 
5. Review your details and click Submit 
6. Approve the UPI notification on your phone 

After you submit your bid, the exchange will approve it and you'll receive a notification to block funds in your UPI app. Once you approve the block request, the required amount will be deducted from your bank account. If your application is successful, shares will be credited to your Demat account on the allotment date.