The shares of this leading insurance company nosedived by over 11 percent on Monday after reports suggested that PE firm (True North) and a company’s top management likely sold shares representing 7.2% of the company.
With a market capitalisation of Rs 15,335 crores, the shares of Niva Bupa Health Insurance Company Ltd are currently trading at Rs 83.9 per share, down by 23.3 percent from its 52-week high of Rs 109.34 per share. Over the last six months, the stock has delivered a return of 12.27 percent.
On a block trade, approximately 56.3 lakh shares of Niva Bupa Health Insurance were traded, with reports suggesting that likely sellers Fettle Tone (investment vehicle of True North) and Krishnan Ramchandra (MD and CEO of Niva Bupa) had sold a possible 7.2% stake, for an estimated deal value of Rs 1,082 crore.
Based on the term sheet, the indicative offer price was set at Rs 82 per share, which is a discount of 11 percent from its previous trading closing price of Rs 92.28. ICICI Securities and Kotak Mahindra Capital acted as investment bankers on the deal.
Niva Bupa Health Insurance Company Limited, formerly known as Max Bupa, provides various health insurance products such as individual and family health insurance plans, critical illness, personal accident, and travel insurance.
The company reported a revenue growth of 28 percent to Rs 5,374 crores in FY25 from Rs 4,196 crores in FY24. Coming to its profitability, it reported a net profit growth of 161 percent to Rs 214 crores in FY25 from Rs 82 crores in FY24.
The stock has delivered an ROE and ROCE of 7.33 percent and 6.75 percent, respectively, and is currently trading at a P/E of 71.58x as compared to its industry average of 40.28x.
Written by Satyajeet Mukherjee
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