Niva Bupa shares fall 11% as PE investor sells 12% stake in block deal
Niva Bupa shares: ETNOW had reported that Fettle Tone LLP, an investment arm of True North, was likely to offload up to 122 million shares, representing about 6.7% of Niva Bupa's equity. Additionally, CEO Krishnan Ramachandran was expected to sell around 10 million shares, or 0.5% of the company's stake. The shares were priced at ₹82 each, valuing the total deal at approximately ₹1,082 crore.
Tired of too many ads?
Remove Ads
Tired of too many ads?
Remove Ads
Shares of Niva Bupa Health Insurance slipped as much as 11.1% on Monday to Rs 82 on the BSE after a large block deal involving a 12% equity stake saw 56.3 lakh shares change hands, as per ETNOW.Ahead of the trade, on June 1, ET NOW reported, citing sources, that homegrown private equity firm True North and Niva Bupa's Managing Director and CEO, Krishnan Ramachandran, were set to offload a combined 132 million shares in the health insurer through a block deal.ETNOW had also reported that Fettle Tone LLP, an investment vehicle of True North, was expected to sell up to 122 million shares, or roughly 6.7% of Niva Bupa's equity. CEO Krishnan Ramachandran was likely to dilute 10 million shares, equating to around 0.5% of the company. The offer price was set at Rs 82 per share, pegging the total size of the transaction at around Rs 1,082 crore.Based on the latest shareholding pattern as of March-end, the company's promoter Bupa holds 55.98% stake, while True North holds 17.47% via Fettle Tone LLP.Niva Bupa reported a 31.2% year-on-year rise in net profit for the March quarter, posting Rs 206 crore compared to Rs 157 crore in the same period last year. Gross premiums increased 18% to Rs 2,078.7 crore, while net premiums climbed 21% to Rs 1,672 crore.However, the insurer's underwriting profit slipped 12.2% year-on-year to Rs 57.6 crore from Rs 65.6 crore. Operating profit also fell sharply by 43.1% to Rs 94.9 crore from Rs 166.8 crore in the year-ago period. Its solvency ratio stood steady at 3.03% on a sequential basis.Niva Bupa Health Insurance listed on Indian stock exchanges in November 2024, marking the first domestic listing of a pure-play global MNC health insurer backed by British firm Bupa. In September 2023, True North ceded control to Bupa by selling a 20% stake for approximately Rs 2,700 crore.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
24 minutes ago
- Time of India
Steep power bill increase comes as shock for Pkl residents
Residents of Panchkula have received electricity bills showing increase of 100% to 400% for the period from mid-April to mid-May, compared to the previous year, despite minimal changes in unit consumption. While the Haryana Electricity Regulatory Commission implemented a rate increase of 20 to 30 paise per kWh/kVAh for domestic and industrial categories, an analysis of various bills reveals disproportionate charges despite marginal increase in consumption. This has had a particularly adverse effect on middle-class families, the economically disadvantaged and pensioners. S K Nayar, Citizens' Welfare Association president from Sector 15, experienced a 145% increase in charges while maintaining similar consumption. His bill rose to Rs 2,042 for 210 units, compared to Rs 833 for 216 units in April 2024. "It is a loot of public money, and a wrong step was taken. Earlier, there used to be a minimum charge, and even if you went out of the city for a few months, the bill amount would not pinch you. But they are imposing fixed charges, which have burned a hole in the pockets of the common man," he rued. Sector 25 resident Mohit Gupta received a bill of Rs 5,641 for 668.25 units, while last April's bill was Rs 2,673 for 496.23 units. Despite lower consumption previously, this year's rate increase has resulted in substantially higher charges. Sant Singh Gill, former RWA president of Sector 25, saw his bill increase to Rs 3,745, as compared to Rs 1,286 last year, representing a 191% rise in charges against a 47% increase in consumption. Analysis shows varied impacts: Cases with abnormal consumption increases saw 430% higher bills, while 38% consumption increases resulted in 111% higher bills. Even with 21% reduced consumption, bills increased by 87%. Uttar Haryana Bijli Vitran Nigam (UHBVNL) chief engineer (Operations) Chandan Singh said, "The bills have been generated as per HERC's current rates. Some may have felt bills are higher because consumption has increased. As far as fixed charges are concerned, it is a certain amount for certain uses." The 2025-26 electricity order confirms rate increases of 20 to 30 paise per kWh/kVAh for both domestic and industrial categories in Haryana.
Economic Times
28 minutes ago
- Economic Times
Banks park big money with 'rival' mutual funds
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Much of the debate in the banking industry in 2024 revolved around why the deposits growth was extremely muted in relation to the growth in credit. Some blamed it on mutual funds, some on gold and others on derivatives trading by individuals. But the truth was a lot more 2025, Indian financial markets are seeing something that they don't see often. Banks, which, forever, used to seek deposits or borrow from the market to lend are doing something strange: they are pouring funds into mutual funds which, partly, compete with them for a share of the investor's mutual fund investments jumped 91% on year to ₹1.19 lakh crore as on March 21, 2025, from ₹62,499 crore a year earlier, data from the Reserve Bank of India (RBI) bulletin showed. Banks' MF investments had grown 28% in the previous fundamental business of banks is to lend to individuals who are keen to buy homes and cars, or to those entrepreneurs and companies which are looking to put up plants or set up services business. But they seem to be keen on giving funds to MFs instead of directly lending to borrowers. Why is it?There may be two reasons for that-one, that there is not much demand for loans from banks, and second, that they are suddenly finding themselves with surplus funds because of what the monetary authorities are doing."Besides suboptimal credit growth, bank investments in mutual funds schemes have gone up due to surplus liquidity conditions, favourable market conditions and relatively faster execution," said Vinod AN, general manager and treasury head at South Indian Bank Banks loans grew 12.1% in FY25, down from 16.3% a year earlier. This is probably due to slowing income growth and uncertainties on the jobs front for many. This situation is the opposite of what was the situation in the year before when loans grew 16.3%, and deposits were at 12.9% growth. This led to a lot of debate about whether there is a behavioural shift in savers."Households and consumers who traditionally leaned on banks for parking or investing their savings are increasingly turning to capital markets and other financial intermediaries," said former RBI governor Shaktikanta Das. "While bank deposits continue to remain dominant as a percentage of financial assets owned by households, their share has been declining. Households are turning to other avenues for deploying their savings instead of banks." While individual behaviour was part of the problem, there was also a monetary phenomenon at work. The RBI, which wanted to tame inflation kept the monetary conditions tight, forcing banks to borrow from it or the market. But that has since changed to accommodative from banking system is in surplus at ₹1.5 lakh crore. Banks probably have more than what they need to meet the loans are parking excess funds with MFs. Are they buying shares? Or, are they doing SIPs? Neither. They know that this is a short-term issue. They are also doing something to earn higher short-term returns. "Most investments are in liquid and money market schemes, which is also reflected in the MF investment numbers where investments are in zero risk short-term debt instruments such as T-bills where returns are higher," said Venkat N Chalasani, CEO, Association of Mutual Funds in India (AMFI).
Time of India
33 minutes ago
- Time of India
'Sitaare Zameen Par' makers shares his opinion on marching of tech in cinema
Director R.S. Prasanna, who is awaiting the release of his upcoming film 'Sitaare Zameen Par', feels that human beings will soon catch up with the technological changes in filmmaking. The filmmaker spoke with IANS in the run-up to the release of his film, which features Bollywood superstar Aamir Khan and Genelia Deshmukh. He recollected how he saw Indian cinema legend Kamal Haasan experimenting with a digital camera, Red Dragon. Speaking with IANS, Prasanna said, "I think the industry is pretty fast in adapting, like I remember when 35mm film was there and I was in film school and Kamal Haasan sir was testing the Red camera in our L.V. Prasad Film Institute, Chennai where I studied. He was doing a test shoot. I remember all the people around saying, 'it's just a fad and it'll not happen, it's not gonna happen', and it did". Aamir Khan's altered AI video hits cyberspace; 'Mr Perfectionist' issues clarification on 'endorsing' a particular political party The director said that one cannot stop the march of technology and one has to adapt. The audience will demand a change, the filmmakers will rise, the technological change will happen as it should, and experiments will keep happening, some will click, some will not. He further mentioned, "But I think one thing which will never change is the way our hearts beat, so as long as the heart is there in everything, the visual is only pixels, the sound is only decibels, but that feeling, that soul, that is, as long as we have a heart, stories told by humans will always be relevant". He then cited the example of romance as to how the shape or form of romance in cinematic storytelling has changed but the soul is the same. He shared, "If you see around yourself, romance has been there from early manage, they may say romance has changed, no romance has not changed, the medium has changed, today you call it situationship or anything else but, still the heart pains if you don't get to be with the person of your choice". "I feel unless genetically our heart changes or our mind changes, I think storytelling and emotions will be the same, the form will keep changing and we have to be on the awareness of that as a director, but I think for me as a filmmaker, I'm only looking for the soul, which I think soul is very old, so it won't change that fast", he added. Produced by Aamir Khan under his banner, Aamir Khan Productions, 'Sitaare Zameen Par' is set to release in cinemas on June 20, 2025. Check out our list of the latest Hindi , English , Tamil , Telugu , Malayalam , and Kannada movies . Don't miss our picks for the best Hindi movies , best Tamil movies, and best Telugu films .
