Niva Bupa Health Insurance Company Limited has been making waves in the stock market, with its share price soaring by an impressive 46.96% in just three trading sessions. On Thursday, the stock surged by 11.14% to hit a day high of Rs 109.41, attracting significant attention from investors and market enthusiasts.
High Trading Volume and Market Capitalization
The trading volume for Niva Bupa shares on the BSE was remarkable, with approximately 20.01 lakh shares exchanging hands—far exceeding the two-week average of 8.65 lakh shares. This heavy activity resulted in a turnover of Rs 20.59 crore. The company's market capitalization (m-cap) touched Rs 18,206.32 crore, further underscoring the stock's stellar performance.
Reason Behind the Rally: GST Rate Reduction Speculation
The rally was fueled by media reports suggesting that the central government might consider a reduction in GST rates on health insurance premiums. This news led to increased investor optimism, boosting demand for Niva Bupa shares.
However, both the BSE and NSE sought clarification from the company regarding the GST-related speculation. In its response, Niva Bupa clarified:
"We have not received any official communication from any government authority regarding changes in GST rates on health insurance premiums. The company is not aware of any developments beyond the media reports."
IPO Details and Company Background
Niva Bupa shares were listed on November 14, following a successful initial public offering (IPO) held from November 7 to November 11. The shares were offered in a price band of Rs 70-74 per share, with a lot size of 200 shares. The IPO was subscribed 1.80 times, raising a total of Rs 2,200 crore, which included a fresh issue of Rs 800 crore and an offer-for-sale (OFS) worth Rs 1,400 crore.
Founded in 2008, Niva Bupa Health Insurance is a joint venture between the Bupa Group and Fettle Tone LLP. The company offers a range of health insurance solutions, providing access to a comprehensive healthcare ecosystem through its Niva Bupa Health mobile app and website.
Conclusion
The recent surge in Niva Bupa's share price highlights strong investor interest and market optimism. While the GST rate reduction news remains unverified, the stock’s performance reflects confidence in the company's growth potential and market standing. Investors should closely monitor further developments to make informed decisions.
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