The Niva Bupa Health Insurance Company’s initial public offering (IPO) will start on Thursday, November 7, and will be open for bidding until Monday, November 11.
Interested investors can apply for a minimum of 200 equity shares, with additional shares available in multiples. The fixed price range for the shares is between Rs 70 and Rs 74 each.
Company Overview
Niva Bupa Health Insurance Company was established in 2008 as a joint venture between the Bupa Group and Fetal Tone LLP.
It offers health insurance services and provides customers with access to a wide range of health resources through its mobile app and website.
Plans to Raise Funds
According to Business Today, the IPO will consist of a fresh share sale worth Rs 800 crore and an offer-for-sale (OFS) of up to Rs 1,400 crore by the company’s promoters.
The total amount the company aims to raise through this IPO is Rs 2,200 crore. The anchor book for the IPO will open on Wednesday, November 6.
Purpose of the IPO Funds
The funds raised from the IPO will be used to strengthen the company’s capital base and improve solvency levels, along with general corporate purposes.
Proceeds from the OFS will go to the selling shareholders, which include Bupa Singapore Holdings and Fetal Tone LLP.
As of March 31, 2024, Niva Bupa Health Insurance had 14.73 million active life insurance policies and operated in 22 states and four union territories in India.
The total gross written premium (GWP) grew at an annual rate of 41.27%, with retail health GWP increasing by 33.41% from FY22 to FY24.
Financial Performance
For the quarter ending June 30, Niva Bupa Health Insurance reported a net loss of Rs 18.82 crore with revenues of Rs 1,124.90 crore.
However, for the financial year ending March 31, 2024, the company posted a net profit of Rs 81.85 crore on revenues of Rs 4,118.63 crore.
Allocation of Shares
In this IPO, 75% of the shares are reserved for Qualified Institutional Buyers (QIBs), 15% for non-institutional investors, and the remaining 10% for retail investors.
Listing Information
The shares of Niva Bupa Health Insurance will be listed on both the BSE and NSE on Thursday, November 14.
The book running lead managers for this IPO include ICICI Securities, Morgan Stanley India Company, Kotak Mahindra Capital Company, Axis Capital, HDFC Bank,
and Motilal Oswal Investment Advisors. KFin Technologies is the registrar for the issue.
