Niva Bupa IPO: 10 key risks investors should know before subscribing to the ₹2,200 crore issue | Stock Market News

Niva Bupa IPO: The initial public offering (IPO) of Niva Bupa Health Insurance Company Ltd, previously known as Max Bupa Health Insurance Company, opened for public subscription today (November 7) and will end on Monday, November 11. The issue, priced between ₹70-74 per share, raised ₹990 crore from anchor investors on Wednesday, November 6.

The IPO, valued at ₹2,200 crore, consists of a fresh equity share issuance worth ₹800 crore and an offer for sale (OFS) amounting to ₹1,400 crore. Under the OFS, Fettle Tone LLP is set to sell shares totalling ₹1,050 crore, while Bupa Singapore Holdings Pte Ltd plans to sell shares worth ₹350 crore.

The firm plans to use the net funds from the new issuance to enhance its capital foundation to improve solvency, while a part will be allocated for general corporate activities.

Niva Bupa IPO lot size is 200 equity shares and in multiples of 200 equity shares thereafter. Niva Bupa Health Insurance IPO has reserved not less than 75% of the shares in the public issue for qualified institutional buyers (QIB), not more than 15% for non-institutional Institutional Investors (NII), and not more than 10% of the offer is reserved for retail investors.

Here are some of the key risks listed by the company in its Red-Herring Prospectus (RHP):

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