Health insurer Niva Bupa files IPO papers with Sebi to raise Rs 3,000 cr

The company intends to utilise net proceeds from the fresh issuance to the extent of Rs 625 crore towards strengthening their capital base and aiding solvency levels, and for general corporate purpose

Niva Bupa Health Insurance has filed a draft red herring prospectus (DRHP) with the capital market regulator Sebi to raise Rs 3,000 crore via Initial Public Offering (IPO).
 

The IPO with a face value of Rs 10 each is a mix of fresh issuance of Rs 800 crore and an offer for sale (OFS) of up to Rs 2,200 crore by promoter and investor selling shareholders. Out of total OFS, Bupa Singapore Holdings Pte. Ltd will raise Rs 320 crore and up to Rs 1880 crore by Fettle Tone LLP.

The company intends to utilise net proceeds from the fresh issuance to the extent of Rs 625 crore towards strengthening of their capital base and aid solvency levels and for general corporate purposes.

The equity shares are proposed to be listed both on BSE and NSE.

The company, in consultation with the book-running lead manager, may consider an issue of specified securities up to Rs 160 crore as a “pre-IPO placement”.  If such placement is completed, the fresh issue size will be reduced.

The offer is being made through the Book Building Process, wherein not less than 75 per cent of the offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (QIB), not more than 15 per cent of the offer shall be available for allocation to Non-Institutional Bidders and not more than 10 per cent of the offer shall be available for allocation to Retail Individual Bidders.

The standalone health insurer (SAHI) has a Gross Direct Written Premium (GDPI) of Rs 5,499.43 crore in FY2024. Its market share in the Indian SAHI market was 16.24 per cent for FY2024.

After listing, it will be the second SAHI after Star Health & Allied Health Insurance to be listed. It will be the third non-life insurance company after New India Assurance and ICICI Lombard General Insurance to be on the bourses.

ICICI Securities, Morgan Stanley India, Kotak Mahindra Capital, Axis Capital, HDFC Bank and Motilal Oswal Investment Advisors are the lead book-running managers.