Niva Bupa IPO: Health Insurance company files draft prospectus to raise Rs 3,000 crore – Times of India

NEW DELHI: Health Insurer Niva Bupa, earlier known as Max Bupa Health Insurance Company, aiming to raise Rs 3,000 crore via an initial public offering (IPO) has submitted initial documents to market watchdog Sebi on Saturday.
The net proceeds from the fresh issuance, amounting to Rs 625 crore, will be used to strengthen the company’s capital base and improve solvency levels, with the remaining funds will be allocated for general corporate purposes.
Meanwhile, the Draft Red Herring Prospectus (DRHP) reveals that the proposed IPO includes fresh issuance of equity shares amounting to Rs 800 crore and an offer for sale (OFS) of up to Rs 2,200 crore by promoter Bupa Singapore Holdings Pte Ltd and an investor shareholder named Fettle Tone LLP.
Bupa Singapore Holdings Pte Ltd, which owns 62.27% of the insurance company will dilute shares worth Rs 320 crore while Fettle Tone LLP will sell shares worth Rs 1,880 crore in the OFS. Fettle Tone LLP have a 27.86% stake in the compnay.
Additionally, the company may also consider a “pre-IPO placement” of securities worth up to Rs 160 crore, according to the draft papers filed on Saturday and If this is implemented, the size of the fresh issue will be adjusted accordingly.
Niva Bupa Health Insurance Company will be the second standalone health insurer to file an IPO, following Star Health & Allied Insurance Company. With a Gross Direct Written Premium (GDPI) of Rs 5,499.43 crore in fiscal 2024, Niva Bupa is one of the leading standalone retail health insurers (SAHI) in India.
The company’s Gross Written Premium (GWP) grew by 37.68%, from Rs 4,073.03 crore in fiscal 2023 to Rs 5,607.57 crore in fiscal 2024. Moreover, profit after tax increased significantly from Rs 12.54 crore in fiscal 2023 to Rs 81.85 crore in fiscal 2024.
As of March 31, 2024, the company operates 210 physical branches across 22 states and 4 union territories in India.
The book-running lead managers for the offer are ICICI Securities, Morgan Stanley India Company, Kotak Mahindra Capital Company, Axis Capital, HDFC Bank, and Motilal Oswal Investment Advisors. The company intends to list its equity shares on both the BSE and NSE.

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