Niva Bupa Health Insurance IPO Opens for Subscription on Nov 7

Reportedly, the net proceeds will be used to boost Niva Bupa’s capital base, strengthening solvency levels, with the OFS proceeds allocated to selling shareholders.

Niva Bupa Health Insurance Company’s initial public offering (IPO) will open for bidding on November 7 and close on November 11.

The IPO is priced between INR 70-74 per share, with a minimum lot size of 200 equity shares.

Established in 2008, Niva Bupa Health Insurance is a joint venture between the Bupa Group and Fettle Tone LLP. The company provides health insurance products and services, including digital access via the Niva Bupa Health app and website.

IPO Details

The IPO includes a fresh share sale of INR 800 Cr and an offer-for-sale (OFS) of INR 1,400 Cr from promoters Bupa Singapore Holdings and Fettle Tone LLP, totaling INR 2,200 Cr. The anchor book for the IPO will open on November 6.

Reportedly, the net proceeds will be used to boost Niva Bupa’s capital base, strengthening solvency levels, with the OFS proceeds allocated to selling shareholders.

As of March 31, 2024, Niva Bupa Health Insurance insured 14.73 million active lives across 22 states and four union territories.

Further, the company’s gross written premium (GWP) grew at a CAGR of 41.27%, with retail health GWP up by 33.41% between FY22 and FY24.

However, financially, Niva Bupa reported a net loss of INR 18.82 Cr for the quarter ending June 30, with revenue at INR 1,124.90 Cr.

For the financial year ending March 31, 2024, it posted a net profit of INR 81.85 Cr on revenue of INR 4,118.63 Cr.

The IPO allocates 75% to qualified institutional buyers (QIBs), 15% to non-institutional investors (NIIs), and 10% to retail investors. ICICI Securities, Morgan Stanley India, Kotak Mahindra Capital, Axis Capital, HDFC Bank, and Motilal Oswal Investment Advisors are the lead managers, with Kfin Technologies as registrar.

Shares will be listed on BSE and NSE on November 14.

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