Swiggy and Niva Bupa Health Insurance IPOs opened in the first week of November. While Swiggy targets raising Rs 11,327.43 crore, the health insurance company aims to raise Rs 2,200 crore. Are you wondering where to put your money to garner some better gains?
Here are some factors to take into account:
Niva Bupa Health Insurance – Valuation check
The health insurance company has turned net profitable in FY23 where it posted a profit after tax of Rs 12.54 crore against a net loss of Rs 196.5 crore in FY22. The company reported a net profit of Rs 81.8 crore in FY24, a jump of 552% on year compared to FY23.
The company will use the raised proceeds to augment its capital base, strengthen solvency levels, and perform other general corporate purposes.
“The company aims to build a comprehensive, customer-focused health insurance platform and healthcare ecosystem, offering customers access to a variety of services, including wellness programs, doctor consultations, diagnostics, and medicine delivery. They plan to keep investing in developing and expanding their health insurance ecosystem through their own initiatives, like introducing more health assessment tools and wellness content, and by partnering strategically for services such as digital consultations and home medicine delivery,” said Anand Rathi Research in a research report.
Niva Bupa Health Insurance IPO opened on November 07 to raise Rs 2,200 crore. The IPO closes on November 11. The issue is a combination of fresh shares and an offer for sale. The allotment of shares is likely to be finalised on November 12 and listing on November 14. The company set the IPO price band in a range of Rs 70 to Rs 74 per equity share.
Swiggy – Does it give you an edge?
The company proposes to utilize the funds raised for investment in the material subsidiary, Scootsy, to pay for borrowings. Also, the investment in the material subsidiary, Scootsy, will expand the dark store network for the quick commerce segment. The food-delivery company will invest in technology and cloud infrastructure, brand marketing, and business promotion expenses to enhance the brand awareness and visibility of its platform. While Swiggy proposes to use some part of the raised money for acquisition and other general corporate purposes.
Swiggy has been reporting net loss since the inception of the company in 2014.
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