Niva Bupa submits draft papers with SEBI for Rs 3,000 crore IPO.
Niva Bupa Health Insurance, earlier known as Max Bupa, has filed draft papers with Sebi for an initial public offering of Rs 3,000 crore.
The standalone health insurer’s IPO comprises an issue of fresh equity shares worth Rs 800 crore and an offer for sale (OFS) of up to Rs 2,200 crore by promoters and external investors.
In this OFS, promoter company Bupa Singapore Holdings Private Limited will sell shares worth Rs 320 crore, and external investor Fetal Tone LLP will sell shares of Rs 1,880 crore.
As of now, Bupa Singapore Holdings Private Limited and Fetal Tone LLP hold 62.27% and 27.86% stake in the company, respectively.
The company plans to make a pre-IPO placement of up to Rs 160 crore (20% of the fresh issue). In a draft filing, the company said that if the pre-IPO placement is successful, the size of the fresh issue will be reduced proportionately.
Niva Bupa is one of the five standalone health insurance companies with a special focus on retail health insurance. The company posted a gross written premium of Rs 5,606 crore in Financial year 2024, up 38% from Rs 4,073 crore in FY23. As of March 2024, Niva Bupa commanded a market share of 16.24% among standalone players with 14.73 million insured people.
The company will spend Rs 625 crore of the IPO proceeds to strengthen its solvency level and enhance its capital base, and the rest will be used for general corporate purposes.
Till march 2024, across 26 states Niva Bupa has 1,43,074 agents and 210 branches in it. Their products are also distributed through 64 banks and other corporate agents. In the financial year 2024, individual agents contributed 32.07% to its business, while corporate agents contributed 27.25% and other broker channels contributed 27.04%
