True North sells 20% stake in Niva Bupa to Bupa for Rs 2,700 crore

Private equity firm True North has sold a 20 per cent stake in Niva Bupa, a leading Indian health insurance company, to its joint venture partner, Bupa of the UK, for around Rs 2,700 crore—taking the Indian company's valuation to Rs 13,500 crore. The company will be listed on the Indian stock exchanges soon, a True North statement said. True North will become a minority shareholder.

This transaction will increase Bupa's stake in Niva Bupa to 63 per cent. Upon approval, the share transfer will be one of the largest transactions in the Indian insurance industry by a global player since the Insurance Regulatory and Development Authority of India (IRDAI) permitted foreign entities to own up to 74 per cent of an Indian insurer.

UK-based Bupa, an international healthcare company, was a founding shareholder when the business was first established in India in 2008. True North became Niva Bupa's majority shareholder in 2019. Since 2019, True North has worked closely with Bupa on implementing a successful strategy for Niva Bupa. By FY23, Niva Bupa became the third-largest retail health insurer, achieving more than Rs 4,000 crore in gross written premium (GWP) and expanding its presence to nearly every district in the country. True North believes that the time is right for Bupa to take a majority shareholding in the business to propel Niva Bupa to its next stage of growth.

Iñaki Ereño, Group CEO of Bupa, said, “Since founding the company as a joint venture, we are immensely proud of how we have helped Niva Bupa grow into such a flourishing and successful business over the years. In becoming a majority shareholder, we are building on the foundation of our strong partnership with True North."

Krishnan Ramachandran, Managing Director and Chief Executive Officer of Niva Bupa, said, “I am very excited by this vote of confidence in the health insurance opportunity in India and in the future of Niva Bupa. It gives renewed energy to both the employees and stakeholders of Niva Bupa to pursue growth and deliver on our purpose, which is to give every citizen of India the confidence to access the best healthcare. This also enhances our ability to bring global best practices to our business in order to provide an outstanding customer experience.”

Divya Sehgal, Partner at True North, said, "The company’s premium crossed Rs 4,000 crore last year, a significant increase from Rs 1,000 crore at the time of our initial transaction in 2019."

Kotak Investment Banking is the exclusive financial advisor to True North and Niva Bupa, while Rothschild & Co is the exclusive advisor to Bupa on the transaction.