Niva Bupa Health Insurance Rs 2,200-crore IPO to open on November 7, check all details here

Niva Bupa Health Insurance Company

Private health insurer Niva Bupa Health Insurance Company has filed red herring prospectus with the Registrar of Companies, and has decided to open its Rs 2,200-crore initial share sale for subscription on November 7.

The IPO is a combination of fresh issuance of equity shares worth Rs 800 crore, and an offer-for-sale of Rs 1,400 crore worth shares by promoters.

Promoters Bupa Singapore Holdings Pte, and global private equity firm True North-owned Fettle Tone LLP will be selling Rs 350 crore, and Rs 1,050 crore worth shares in the offer-for-sale. Bupa Singapore increased its offering size from Rs 320 crore, and Fettle Tone reduced from Rs 1,880 crore earlier mentioned in the draft papers filed in June.

Promoters hold 89.07 percent shareholding in the company, including Bupa Singapore Holdings Pte's 62.19 percent stake, and Fettle Tone LLP 26.80 percent.

Amongst public shareholders, India Business Excellence Fund IV is the biggest shareholder with 2.81 percent stake, followed by V-Sciences Investments Pte (2.60 percent), SBI Life Insurance Company (1.3 percent), and A91 Emerging Fund II LLP (1.03 percent).

The price band for the public issue will be disclosed by the company by coming Monday. The anchor book will be opened for institutional investors on November 6, while the issue will close for all investors on November 11.

Niva Bupa Health Insurance is one of India’s largest standalone health insurers (SAHI) based on overall health GDPI (gross direct premium income) of Rs 5,494.43 crore in fiscal 2024. Its overall gross written premium (GWP) grew at a CAGR of 41.27 percent and GWP from retail health grew at a CAGR of 33.41 percent during FY22-FY24, while its GWP in the quarter ended June 2024 increased by 30.84% over the same period previous fiscal.

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It had a market share of 17.29 percent in the Indian SAHI market in the current fiscal 2025, increasing from 16.24 percent in the previous fiscal 2024, based on
retail health GDPI.

The Gurugram-based health insurance company will utilise Rs 800 crore out of the net fresh issue proceeds towards augmentation of its capital base to maintain and strengthen its solvency levels by investing in instruments.

Post issue closing, it will finalise basis of allotment of IPO shares by November 12, while the Niva Bupa Health Insurance IPO shares will be credited to demat accounts of eligible investors by November 13.

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Post allotment date, Fettle Tone, which is controlled by True North Fund VI LLP, will cease to be a promoter of the company as per the IRDAI Registration and Transfer Regulations, and will become investor.

Investors can start trading in Niva Bupa Health Insurance shares on the BSE and NSE, effective November 14. Post listing, this would be the fourth health insurer available for trading on the bourses, after Star Health and Allied Insurance, ICICI Lombard General Insurance, and The New India Assurance Company.

On the financials front, the insurance company has recorded net profit at Rs 81.85 crore in the fiscal 2024, increasing significantly from Rs 12.5 crore in the previous fiscal, but the operating profit dropped sharply to Rs 188 crore from Rs 350.9 crore during the same period.

It has posted loss of Rs 18.8 crore in the three-month period ended June 2024, narrowing from loss of Rs 72.2 crore in the year-ago period, however, its operating profit stood at Rs 23.2 crore against operating loss of Rs 13.4 crore in the same period.

The book running lead managers that are handling the issue are ICICI Securities, Morgan Stanley India Company, Kotak Mahindra Capital Company, Axis Capital, HDFC Bank, and Motilal Oswal Investment Advisors. KFin Technologies is the registrar to the offer.