Niva Bupa Health, Paras Healthcare Get SEBI Nod for IPOs

Reportedly, Niva Bupa plans to raise INR 3,000 Cr through a combination of a fresh issue worth INR 800 Cr and an offer-for-sale (OFS) of INR 2,200 Cr.

The Securities and Exchange Board of India (SEBI) has approved the initial public offerings (IPOs) for Niva Bupa Health Insurance and Paras Healthcare.

Reportedly, Niva Bupa plans to raise INR 3,000 Cr through a combination of a fresh issue worth INR 800 Cr and an offer-for-sale (OFS) of INR 2,200 Cr.

Paras Healthcare’s IPO will consist of a fresh issue of INR 400 Cr and an OFS of 1.49 Cr equity shares.

SEBI recently issued observation letters to both companies, allowing them to proceed with their IPO plans.

Niva Bupa, backed by True North, filed its draft red herring prospectus on June 29, while Paras, supported by Creador, filed on July 31.

In the Niva Bupa offering, Bupa Singapore Holdings will sell shares worth INR 320 Cr, while Fettle Tone will sell shares worth INR 1,880 Cr through the OFS.

Moreover, Niva Bupa Health is a joint venture between Bupa Group and Fettle Tone. Bupa Singapore currently holds a 62.27% stake, with Fettle Tone holding 27.86%.

Proceeds from the fresh issue will be used to boost the insurer’s capital base and strengthen solvency levels.

Paras Healthcare’s IPO will use INR 300 Cr of the fresh issue to repay debt, with the remaining funds allocated for general corporate purposes.

Promoter Dharminder Kumar Nagar and investor Commelina will sell 29.28 lakh and 1.2 Cr shares respectively in the OFS. Paras operates eight hospitals under the Paras Health brand, with 2,135 beds across six states.

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