Niva Bupa Health Insurance Co.'s share price rose for a second consecutive session on Wednesday, adding nearly 30%, on likely reduction in GST rate on health and life insurance policies.
A PTI report citing finance minister Nirmala Sitharaman said the cost of insurance to the policy holder is expected to come down if the GST Council recommends a reduction in GST rate on health and life insurance policies.
In a clarification on Tuesday the company said, "We would like to clarify that we have not received any official communication from any Government Authority/Department on the change of GST rates on Health Insurance premium."
"The Company is not aware of any such developments, except for news as appeared in media," it added. "We, hence cannot verify/confirm the news."
On Wednesday, Niva Bupa Health Insurance share price rose as much as 18.9% to Rs 97.42 apiece, the highest level. It pared gains to trade 17.8% higher at Rs 96.50 apiece, as of 2:17 p.m. This compares to a 0.3% advance in the NSE Nifty 50 Index.
On November 14, the scrip got listed at a premium of 6.08% and 5.59% on the BSE and NSE, respectively. The health insurer raised up to Rs 2,200 crore in its maiden issue which was subscribed 1.8 times on the third day of bidding, led by demand from retail investors.
Qualified institutional buyers subscribed 2.06 times, non-institutional investors bid 0.68 times, and retail investors subscribed 2.73 times in their IPO allotment.
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