Today i.e. November 11 is the last day to bid for the IPO of private health insurer Niva Bupa Health Insurance Company Limited. This issue was subscribed a total of 1.24 times in two days. This IPO was subscribed 1.43 times in the retail category, 1.59 times in the Qualified Institutional Buyers (QIB) category and 0.42 times in the Non-Institutional Investors (NII) category.
The company wants to raise ₹2,200 crore through this issue. For this, Niva Bupa Health Insurance is issuing 108,108,108 fresh shares worth ₹800 crore. Whereas, the existing investors of the company are selling 189,189,189 shares worth ₹ 1,400 crore through Offer for Sale i.e. OFS.
If you are also planning to invest money in it, then we are telling you how much you can invest in it.
What is the minimum and maximum amount that can be invested?
Niva Bupa Health Insurance has fixed the price band of this issue at ₹70-₹74. Retail investors can bid for a minimum of one lot i.e. 200 shares. If you apply for 1 lot as per the upper price band of IPO at ₹74, then you will have to invest ₹14,800.
Whereas, retail investors can apply for maximum 13 lots i.e. 2600 shares. For this, investors will have to invest ₹ 192,400 as per the upper price band.
10% of the issue reserved for retail investors
The company has reserved 75% of the issue for Qualified Institutional Buyers (QIB). Apart from this, 10% share is reserved for retail investors and the remaining 15% share is reserved for non-institutional investors (NII).
What is IPO?
When a company issues its shares to the general public for the first time, it is called Initial Public Offering i.e. IPO. The company needs money to expand its business. In such a situation, instead of taking loan from the market, the company raises money by selling some shares to the public or issuing new shares. For this the company brings IPO.
Graphics Source: NavJivanIndia | VaskarAssets
