The initial public offering (IPO) of private health insurer Niva Bupa Health Insurance Company Limited will open on November 7. Investors can bid for this issue till November 11. The company's shares will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on November 14.
The company is looking to raise ₹2,200 crore through this issue. For this, Niva Bupa Health Insurance is issuing 108,108,108 new shares worth ₹800 crore. Whereas, existing investors of the company are selling 189,189,189 shares worth ₹1,400 crore through Offer for Sale or OFS.
What is the minimum and maximum amount that can be invested? Niva Bupa Health Insurance has fixed the issue price band at ₹70-₹74. Retail investors can bid for a minimum of one lot i.e. 200 shares. If you apply for 1 lot at ₹74 as per the upper price band of the IPO, you will have to invest ₹14,800.
While retail investors can apply for a maximum of 13 lots i.e. 2600 shares. For this, investors have to invest ₹192,400 as per the upper price band.
10% reserve of issue for retail investors The company has reserved 75% of the issue for Qualified Institutional Buyers (QIB). Apart from this, 10% shares are reserved for retail investors and remaining 15% shares are reserved for non-institutional investors (NIIs).
What is an IPO? When a company issues its shares to the general public for the first time, it is called an initial public offering or IPO. A company needs money to grow its business. In such a situation, the company raises money by selling some shares to the public or by issuing new shares instead of borrowing from the market. For this the company brings IPO.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
