Niva Bupa likely to file IPO DRHP with Sebi by early June to raise up to Rs 3,000 cr: CNBC-TV18

Niva Bupa likely to file IPO DRHP with Sebi by early June to raise up to Rs 3,000 crore: CNBC-TV18

Private health insurer Niva Bupa is likely to file IPO DRHP with market regulator Sebi by May-end or early June to raise up to Rs 3,000 crore through a combination of fresh issue of shares, offer for sale (OFS), reported CNBC-TV18 on May 21 citing sources.

Niva Bupa is likely to raise nearly Rs 600-800 crore through fresh issuance of shares and the OFS size is likely to be between Rs 2,200-2,400 crore, the channel reported.

Niva Bupa will be the second health insurer to go public this year after Go Digit.

True North (Indian-Fettle Tone LLP) is likely to be a large seller in Niva Bupa IPO OFS. True North (Indian-Fettle Tone LLP) holds 28 percent stake in Niva Bupa Health Insurance. Bupa Singapore owns 63 percent stake in Niva Bupa Health Insurance.

Fettle Tone LLP is a special purpose vehicle (SPV) set up by True North Fund VI LLP under the IRDAI (Investment by Private Equity Funds in Indian Insurance Companies) Guidelines, 2017.

Recently, Mint reported that Niva Bupa has lined up six investment banks, including Kotak, Axis, HDFC, for the IPO.

Bupa, an international healthcare company headquartered in the UK, was a founding shareholder when the business was first established in India in 2008. True North, one of India’s most experienced private equity firms, became Niva Bupa’s majority shareholder in 2019.

Last year, True North agreed to sell a significant part of its stake in Niva Bupa to its joint venture partner, Bupa, for around Rs 2,700 crore (around £267 million equivalent).