Shares of Niva Bupa Health Insurance fell sharply by nearly 10 percent on Monday, June 2, after a major block deal took place on the stock exchange. Around 56.3 lakh shares of the company were traded in a single block transaction during the early market hours.
At 9:15 am, the stock was trading at ₹83.24, down by 9.8 percent on the NSE. This sudden fall came after reports suggested that Fettle Tone LLP and Krishnan Ramchandra were expected to sell up to 7.2 percent stake in the company through this deal. The total deal value was estimated to be around ₹1,082 crore.
As per the term sheet, the offer price was set at ₹82 per share, which is an 11.1 percent discount from the last closing price of ₹92.29 on May 30. ICICI Securities and Kotak Mahindra Capital were the investment bankers managing the transaction.
In the last six months, the stock of Niva Bupa had rallied well, gaining almost 23.4 percent. Britain’s major health insurance firm Bupa backs the company, which has a stake worth 55.98 percent. Indian private equity firm True North, through firm Fettle Tone LLP, has 17.47 percent stake in the company.
Niva Bupa hit the headlines in November 2024 when it became India’s first listed international health insurer. Max Bupa Health Insurance was the name under which the firm was previously operating until True North acquired the majority interest and then offloaded a 20 percent stake to Bupa in September 2023 for about ₹2,700 crore, transferring controlling interest to the UK partner.
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Source: Moneycontrol
News Desk
