Niva Bupa Health Insurance files papers for ₹3,000 crore IPO
Niva Bupa Health Insurance Company Ltd has submitted a draft red herring prospectus to the Securities Exchange Board of India for an initial public offering (IPO) aiming to raise ₹3,000 crore. The proposal includes a fresh issue of ₹800 crore and an offer for sale (OFS) of up to ₹2,200 crore by existing shareholders and promoters. The British United Provident Fund (Bupa) holds the majority stake in the company.
Details of OFS and IPO managers
The OFS comprises shares worth up to ₹320 crore by Bupa Singapore Holdings Pte and ₹1,880 crore by Fettle Tone LLP. Currently, Bupa Singapore Holdings owns a 62.27% stake while Fettle Tone LLP holds a 27.86% stake in Niva Bupa. The lead managers to the issue are ICICI Securities, Morgan Stanley India, Kotak Investment Capital, Axis Capital and HDFC Bank.
Niva Bupa's plans for IPO proceeds and growth strategy
Niva Bupa plans to use ₹625 crore from the fresh issue to boost its capital base and enhance solvency levels. The company aims to become India's preferred health insurance platform through its 'NivaBupa Health' app and website. As of March 31, 2024, Niva Bupa had 14.73 million active insured lives and expanded its network hospitals from 8,562 to 10,460.
Niva Bupa's financial performance and claims ratio
For the fiscal year ending March 31, 2024, Niva Bupa reported a gross written premium of ₹5,607.57 crore, up from ₹4,073.03 crore the previous year. The company's premium earned was ₹3,811.25 crore, compared to ₹2,662.75 crore a year ago. Total income for the fiscal year stood at ₹4,118.63 crore, up from ₹2,859.24 crore a year prior, with net profit reaching ₹81.85 crore.
