True North-backed Niva Bupa Health Insurance Company Ltd has filed a draft red herring prospectus with Securities Exchange Board of India to raise Rs 3,000 crore via an initial public offering.
The prospectus consists of a fresh issue of Rs 800 crore and an offer for sale of up to Rs 2,200 crore by its existing shareholders and promoters. The company is majority owned by British United Provident Fund (Bupa).
The OFS comprises of up to Rs 320 crore worth of shares by Bupa Singapore Holdings Pte, and Rs 1,880 crore by Fettle Tone LLP. Currently, Bupa Singapore Holdings has 62.27 percent stake while Fettle Tone LLP has 27.86 percent stake in the firm.
ICICI Securities, Morgan Stanley India, Kotak Investment Capital, Axis Capital and HDFC Bank are the lead managers to the issue.
Proceeds from the fresh issue worth Rs 625 crore will be used to augment capital base to strengthen solvency levels, the company said.
The insurer aims to be India's preferred health insurance platform, offering a comprehensive ecosystem through 'NivaBupa Health' app and website.
With 14.73 million active insured lives as of March 31, 2024, its gross written premium stood at Rs 5607.57 crore from Rs 4073.03 crore a year ago. Its GWP grew at a CAGR of 41.27% from Fiscal 2022 to 2024, while combined ratios improved annually: 98.76% in 2024, 97.13% in 2023, and 107.41% in 2022. It expanded network Hospitals to 10,460 by March 31, 2024, up from 8,562 as of March 31, 2022.
For FY24, premium earned stood at Rs 3811.25 crore compared to Rs 2662.75 crore a year ago. Total income for the fiscal year stood at Rs 4118.63 crore verus Rs 2859.24 crore from a year ago. Net profit for the year stood at Rs 81.85 crore versus Rs 1.25 crore a year ago.
The firm incurred claims worth Rs 2249.54 crore in FY24 versus Rs 1439.31 crore last year. Claims ratio stood at 59.02 percent from 54.05 percent last year.
Over 100 companies have tapped the primary market route to raise around $4 billion through public issues this year. This is more than double the amount raised by June last year, Reuters said quoting data from LSEG.
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