Niva Bupa Health Insurance Files DRHP for ₹3000 Crore IPO with SEBI

Niva Bupa Health Insurance Company Ltd. has filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) to raise ₹3,000 crore through an initial public offering (IPO). The proposed IPO includes a fresh issue of shares worth ₹800 crore and an offer for sale(OFS) of up to ₹2,200 crore by existing shareholders and promoters. The company is predominantly owned by British United Provident Association (Bupa).
Niva Bupa Health Insurance IPO

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The OFS segment of the IPO features shares worth ₹320 crore by Bupa Singapore Holdings Pte. and ₹1,880 crore by Fettle Tone LLP. Currently, Bupa Singapore Holdings holds a 62.27% stake in the company, while Fettle Tone LLP holds 27.86%. Through the OFS, private equity firm True North, which purchased a 51% share in Max India in 2019 and maintains its position through Fettle Tone, will be able to partially exit the company.

The company plans to use ₹625 crore from the fresh issue proceeds to strengthen its capital base and improve solvency levels, with the remaining funds allocated for general corporate purposes.

Niva Bupa Health Insurance Files DRHP for ₹3,000 Crore IPO with SEBI

The lead managers for the IPO are ICICI Securities, Morgan Stanley India, Kotak Investment Capital, Axis Capital, and HDFC Bank.

Niva Bupa Health Insurance aims to become India’s leading health insurance platform, offering a comprehensive ecosystem through its ‘NivaBupa Health’ app and website. The company’s network of hospitals expanded to 10,460 by March 31, 2024, up from 8,562 as of March 31, 2022. Niva Bupa incurred claims worth ₹2,249.54 crore in FY24, compared to ₹1,439.31 crore the previous year, with a claims ratio of 59.02% versus 54.05% last year.

This year, over 100 companies have tapped into the primary market, raising approximately $4 billion through public issues, more than double the amount raised by June last year, according to Reuters, citing data from LSEG (London Stock Exchange Group).

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