Niva Bupa IPO: Price band set at ₹70-74 a share for ₹2,200-crore issue
Gurugram-based Niva Bupa intends to utilise the net proceeds from the fresh issuance towards boosting its capital base to strengthen solvency levels and a portion will be used for general corporate purposes.
Niva Bupa Health Insurance Company Ltd, formerly Max Bupa Health Insurance Company, has set a price band of ₹70-74 a share for its initial public offering (IPO) that will open for subscription on November 7. Through the IPO, the company plans to raise ₹2,200 crore.
The IPO is a combination of fresh issuance of equity shares worth ₹800 crore and an offer for sale of up to ₹1,400 crore by promoters. Niva Bupa has reduced the issue size as it was earlier looking to raise ₹3,000 crore.
Under the OFS, Fettle Tone LLP will sell shares to the tune of ₹1,050 crore and Bupa Singapore Holdings Pte Ltd will offload shares valued ₹350 crore.
Currently, Bupa Singapore Holdings Pte owns 62.19% stake while Fettle Tone LLP holds 26.8% stake in the insurance company.
The Gurugram-based health insurance company intends to utilise the net proceeds from the fresh issuance towards boosting its capital base to strengthen solvency levels and a portion will be used for general corporate purposes.
This will be the second standalone health insurer looking to float an IPO, after Star Health & Allied Insurance Company.
About 75% of the issue size has been reserved for qualified institutional buyers, 15% for non-institutional buyers and the remaining 10% for retail investors.
The anchor bidding will open on November 6, and the issue will close for subscription on November 11.
Nuva Bupa is expected to have a post-listing market capitalisation of ₹13,520 crore at the upper end of the price band.
Niva Bupa Health Insurance is one of the country's largest standalone health insurers (SAHI) based on overall health GDPI (gross direct premium income) of ₹5,494.43 crore in fiscal 2024. Its overall gross written premium (GWP) grew at a CAGR of 41.27% and GWP from retail health grew at a CAGR of 33.41% during FY22-FY24, while its GWP in the quarter ended June 2024 increased by 30.84% over the same period previous fiscal.
The firm had a market share of 17.29% in the Indian SAHI market in the current fiscal 2025, increasing from 16.24% in the previous fiscal 2024, based on retail health GDPI.
On the earnings front, the insurance company has recorded a net profit at ₹81.85 crore in the fiscal 2024, increasing significantly from ₹12.5 crore in the previous fiscal, but the operating profit dropped sharply to ₹188 crore from ₹350.9 crore during the same period.
It has posted a loss of ₹18.8 crore in the three-month period ended June 2024, narrowing from a loss of ₹72.2 crore in the year-ago period, however, its operating profit stood at ₹23.2 crore an against operating loss of ₹13.4 crore in the same period.
ICICI Securities Limited, Morgan Stanley India Company Pvt Ltd, Kotak Mahindra Capital Company Limited, Axis Capital Limited, Hdfc Bank Limited and Motilal Oswal Investment Advisors Limited are the book running lead managers of the Niva Bupa Health Insurance IPO, while Kfin Technologies Limited is the registrar.
The allotment for the Niva Bupa Health Insurance IPO is expected to be finalised on November 12, while the company will list on BSE, NSE with tentative listing date fixed as November 14, 2024.
The IPO is a combination of fresh issuance of equity shares worth ₹800 crore and an offer for sale of up to ₹1,400 crore by promoters. Niva Bupa has reduced the issue size as it was earlier looking to raise ₹3,000 crore.
Under the OFS, Fettle Tone LLP will sell shares to the tune of ₹1,050 crore and Bupa Singapore Holdings Pte Ltd will offload shares valued ₹350 crore.
Currently, Bupa Singapore Holdings Pte owns 62.19% stake while Fettle Tone LLP holds 26.8% stake in the insurance company.
The Gurugram-based health insurance company intends to utilise the net proceeds from the fresh issuance towards boosting its capital base to strengthen solvency levels and a portion will be used for general corporate purposes.
This will be the second standalone health insurer looking to float an IPO, after Star Health & Allied Insurance Company.
About 75% of the issue size has been reserved for qualified institutional buyers, 15% for non-institutional buyers and the remaining 10% for retail investors.
The anchor bidding will open on November 6, and the issue will close for subscription on November 11.
Nuva Bupa is expected to have a post-listing market capitalisation of ₹13,520 crore at the upper end of the price band.
Niva Bupa Health Insurance is one of the country's largest standalone health insurers (SAHI) based on overall health GDPI (gross direct premium income) of ₹5,494.43 crore in fiscal 2024. Its overall gross written premium (GWP) grew at a CAGR of 41.27% and GWP from retail health grew at a CAGR of 33.41% during FY22-FY24, while its GWP in the quarter ended June 2024 increased by 30.84% over the same period previous fiscal.
The firm had a market share of 17.29% in the Indian SAHI market in the current fiscal 2025, increasing from 16.24% in the previous fiscal 2024, based on retail health GDPI.
On the earnings front, the insurance company has recorded a net profit at ₹81.85 crore in the fiscal 2024, increasing significantly from ₹12.5 crore in the previous fiscal, but the operating profit dropped sharply to ₹188 crore from ₹350.9 crore during the same period.
It has posted a loss of ₹18.8 crore in the three-month period ended June 2024, narrowing from a loss of ₹72.2 crore in the year-ago period, however, its operating profit stood at ₹23.2 crore an against operating loss of ₹13.4 crore in the same period.
ICICI Securities Limited, Morgan Stanley India Company Pvt Ltd, Kotak Mahindra Capital Company Limited, Axis Capital Limited, Hdfc Bank Limited and Motilal Oswal Investment Advisors Limited are the book running lead managers of the Niva Bupa Health Insurance IPO, while Kfin Technologies Limited is the registrar.
The allotment for the Niva Bupa Health Insurance IPO is expected to be finalised on November 12, while the company will list on BSE, NSE with tentative listing date fixed as November 14, 2024.
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First Published: Nov 4, 2024 3:47 PM IST
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