Subscribe for Niva Bupa Health Insurance Company Ltd IPO; Anand Rathi

IPO

Niva Bupa’s purpose is to “give every Indian the confidence to access the best healthcare”. They aim to achieve this purpose through their health insurance products and services that enable customers to navigate their healthcare journey, by providing them access to a holistic health ecosystem. According to the Redseer Report, they are one of India’s largest and fastest growing SAHI based on overall health GDPI of ₹54,944.28 million in Fiscal 2024. From Fiscal 2022 to Fiscal 2024, their overall GWP grew at a CAGR of 41.27% and their GWP from retail health grew at a CAGR of 33.41%. From the three months ended June 30, 2023, to the three months ended June 30, 2024, their overall GWP also grew by 30.84% and their GWP from retail health grew by 31.99%. The company’s growth in overall health GDPI from Fiscal 2022 to Fiscal 2024 of 41.37% is one of the highest growths among SAHIs, and is almost double of the industry’s average, which according to the Redseer Report, increased by 21.42% from Fiscal 2022 to Fiscal 2024. As per the Redseer Report, we had a market share in the Indian SAHI market of 17.29%, 16.24%, 15.58% and 13.87% for year-to-date August 2024 (Fiscal 2025), Fiscals 2024, 2023, and 2022 respectively based on retail health GDPI.

At the upper price band company is valued at P/BV of 6.1X with a market cap of ₹ 1,35,200 million post issue of equity shares. We believe that the issue is fully priced and recommend “Subscribe – Long Term” rating to the IPO.

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