Niva Bupa Health Insurance, one of India’s leading private health insurers, witnessed a sharp fall in its stock price on June 2, 2025, following a major block deal during the pre-opening trade session. The stock plummeted as much as 11.55% on the NSE and 11% on the BSE, raising eyebrows despite the company’s impressive financial performance in the recent quarters.
🔍 Block Deal Triggers Stock Slide
According to Zee Business, nearly 12% equity – translating to 56.3 lakh shares – changed hands during the pre-opening session in multiple transactions. This triggered a wave of selling pressure, dragging the stock price to an intraday low of ₹82 on the BSE and ₹81.63 on the NSE.
At around 10:19 AM, the stock was trading at ₹83.42 on the BSE, down by nearly 9.6% or ₹8.86 from the previous close. Despite the recent gains post-listing, the sudden fall has left retail investors questioning the market move.
📊 Impressive FY25 Performance
Surprisingly, this decline comes on the back of stellar financial performance by the company. For the March quarter of FY25 (Q4FY25), Niva Bupa reported a 31.21% year-on-year rise in standalone net profit, clocking ₹206.08 crore compared to ₹157.06 crore in the corresponding quarter of FY24.
Sales also saw a sharp jump, increasing by 25.40% to ₹1527.42 crore, up from ₹1218.05 crore in Q4FY24.
🧾 Full-Year Performance Shows Strong Growth
For the full financial year ended March 2025, net profit soared by a massive 160.87%, reaching ₹213.52 crore, as against ₹81.85 crore in FY24.
Revenue for FY25 also surged to ₹4894.46 crore, showing a 28.42% growth over ₹3811.25 crore reported in FY24.
Such consistent improvement in financials signals the company’s strong operational efficiency and expanding market reach.
💹 IPO Performance Still Positive
Niva Bupa launched its IPO in November 2024, listing on November 14, 2024. Despite the recent dip, the stock has gained over 24% from its IPO issue price, considering the previous day’s close at ₹92.
In the last 3 months, the scrip has delivered a 14% gain, although it is still down 0.8% year-to-date.
📈 Should Investors Worry?
Experts believe the block deal could be an institutional sell-off or profit booking and may not reflect the company’s long-term fundamentals. Given the robust financial results and rising insurance demand in India, Niva Bupa still holds strong potential for long-term investors.
Extra Insight from Our Side:
The health insurance sector in India is poised for exponential growth with increasing awareness and rising medical costs. Companies like Niva Bupa, backed by strong financials and growing retail base, are well-positioned to leverage this opportunity. Investors should keep an eye on upcoming quarters and management commentary before making decisions.
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