Niva Bupa Health Insurance files draft papers with Sebi to launch Rs 3,000 crore IPO

Niva Bupa Health Insurance, erstwhile known as Max Bupa Life Insurance, has filed its draft red herring prospectus (DRHP) with capital market regulator Sebi to launch its initial public offering (IPO). The company is looking to raise Rs 3,000 crore from investors via its initial stake sale.
 

According to the draft papers, the health-insurance company is looking to raise Rs 800 crore via fresh share, while the remaining 2,200 crore shall be raised by the means of offer-for-sale (OFS) from its promoter Bupa Singapore Holdings and existing shareholder Fettle Tone LLP.
 

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' before the offer. If such placement is completed, the fresh issue size will be reduced.
 

The net proceeds from the issue shall be utilized towards augmentation of our capital base to strengthen solvency levels and for general corporate purposes, while the proceeds from the OFS shall go to the selling shareholder entities.
 

The company will be offering 75 per cent of the net offer to the qualified institutional buyers, while 15 per cent of the shares shall be available for non-institutional bidders. Retail investors will have a quota for not more than 10 per cent of the shares.
 

Niva Bupa Health Insurance Company is one of largest and fastest growing standalone retail health insurers (SAHI) in India, with a gross direct written premium (GDPI) of Rs 5,499.43 crore in FY24. Its  market share in the Indian SAHI market stood at 16.24 per cent for FY24. Niva Bupa has insured 14.73 million lives, as of March 31, 2024.
 

As of March 31, 2024 with over 143,074 agents Niva Bupa has 210 physical branches across 22 states and 4 union territories in India. It distributes products through 64 banks and other corporate agents, including major institutions like HDFC Bank and Axis Bank, according to a report from Redseer.
 

The company has expanded its network of hospitals from 8,562 in March 2022 to 10,460 by March 2024, with one of the largest networks providing cashless treatment. 326 are Preferred Partner Network (PPN) Hospitals, offering additional benefits such as free ambulance services, designated relationship managers, and discounts on pharmacy, diagnostics, and consultations.
 

ICICI Securities, Morgan Stanley India Company, Kotak Mahindra Capital Company, Axis Capital, HDFC Bank and Motilal Oswal Investment Advisors are the book-running lead managers and KFin Technologies is the registrar of the offer. The equity shares are proposed to be listed on BSE and NSE.