Niva Bupa Health Insurance IPO Opens November 7, Aims to Raise ₹2,200 Crore with Price Band Set at ₹70-₹74
- Niva Bupa Health Insurance to Launch ₹2,200 Crore IPO on NSE and BSE, Listing Date November 14
- The healthcare provider aims to raise ₹2,200 crore through a combination of fresh issue and offer for sale.
BILKULONLINE
Ahmedabad, Nov 5: Niva Bupa Health Insurance, one of India’s leading health insurance providers, is set to launch its highly anticipated initial public offering (IPO) on November 7, 2024. The IPO, a Book Built Offer, is expected to close on November 11, with shares slated to be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) on November 14, 2024.
Through this public offering, Niva Bupa aims to raise approximately ₹2,200 crore, which includes a fresh issue of ₹800 crore and an offer for sale (OFS) of up to ₹1,400 crore. The company has set a price band of ₹70 to ₹74 per share with a face value of ₹10 each. The issue will see a significant portion allocated to Qualified Institutional Buyers (QIB) at 75%, Non-Institutional Investors (NII) at 15%, and Retail Investors at 10%.
Key Financials and Performance Highlights
In its recent financial report, Niva Bupa posted a substantial revenue of ₹328.73 crore for the fiscal year ending March 2024, a slight decrease from ₹413.07 crore in 2023. However, profit figures saw a remarkable increase, surging from ₹12.54 crore in 2023 to ₹81.85 crore in 2024. This translates to a 552.73% rise in Profit After Tax (PAT) within just one year, underscoring the company’s growth potential and operational efficiency.
With assets of ₹3,232.62 crore and revenues of ₹4,118.63 crore for the fiscal year ending March 2024, Niva Bupa’s strong financial health makes it an appealing option for investors looking for long-term gains. The company aims to use the IPO proceeds to bolster its capital base and maintain optimal solvency levels, in addition to fulfilling general corporate requirements.
Founded in 2008, Niva Bupa Health Insurance has established itself as a premier player in India’s healthcare insurance sector, supported by its promoters, Bupa Singapore Holdings Pte Ltd and Bupa Investments Overseas Limited. The company is recognized for delivering a comprehensive health ecosystem via the ‘Niva Bupa Health’ mobile app and website, ensuring a seamless experience for its customers.
Objects of the Issue:
Augment Niva Bupa’s capital base to strengthen solvency levels.
Support general corporate purposes.
IPO Lead Managers:
The IPO is managed by an experienced lineup of investment bankers, including:
ICICI Securities Limited
Morgan Stanley India Company Private Limited
Kotak Mahindra Capital Company Limited
Axis Capital Limited
Motilal Oswal Investment Advisors Limited
With a total issue size of ₹3,000 crore, including a fresh issue of 108,108,108 shares and an offer for sale of 189,189,189 shares, Niva Bupa’s IPO promises to be a significant event in the Indian equity market this year.
Krishna Ramachandran MD & CEO Niva Bupa Health Insurance Company ltd, Anshuman Pareek, Executive Vice President, Sales Nimish Agrawal CMO with Subrat Panda from Motilal Oswal and Vishwanath Mahendra CFO were present in Ahmedabad to announce the details of the IPO of the company before the media persons and interacted with them on Tuesday.
Niva Bupa Health Insurance Company Ltd. (formerly known was Max Bupa Health Insurance Company Limited) is a joint venture between Fettle Tone LLP (an affiliate of True North Fund VI LLP), an Indian private equity firm, and the UK based healthcare services expert, Bupa Singapore Holdings Pte.
Niva Bupa’s health insurance plans are widely known for their industry-first features and affordability. Not many insurers offer plans that are as comprehensive as this. On the other hand, Star is known for its extensive plan list catering to policyholders with complicated medical track records.
Niva Bupa has a strong distribution network pan India with 160+ branches in 350 cities with distribution counter spread across 35000+ bank partner branches. Niva Bupa Health Insurance is among the top health insurance providers and was established in the year 2010.
Established in 1947, Bupa is an international healthcare organization serving over 50 million customers worldwide as of December 31, 2023.
Bupa offers health insurance, healthcare provision, and aged care services. It operates businesses around the world, principally in the UK, Australia, Spain, Chile, Poland, New Zealand, Hong Kong SAR, Türkiye, Brazil, Mexico, India, the US, the Middle East, and Ireland. Bupa also has an associate business in Saudi Arabia.
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Disclaimer: This IPO news report is for informational purposes only and does not constitute financial or investment advice.
