Niva Bupa Health Insurance IPO opens on Nov 7; check price band, lot size & more

The initial public offering (IPO) of Niva Bupa Health Insurance Company shall open for bidding on Thursday, November 7, which can be subscribed until Monday, November 11. Interested investors can apply for the issue in the fixed price band of Rs 70-74 apiece, for a minimum of 200 equity shares and its multiples thereafter.

Incorporated in 2008, Niva Bupa Health Insurance Company is a joint venture between the Bupa Group and Fettle Tone LLP that provides insurance in the health sector. It offers a holistic proposition by providing customers access to a comprehensive health ecosystem and service capabilities through its Niva Bupa Health mobile application and website.

The IPO of Niva Bupa Health Insurance Company includes a fresh share sale of Rs 800 crore and an offer-for-sale (OFS) of up to 1,400 crore by its promoter entities amounting to Rs 1,400 crore. The company is looking to raise Rs 2,200 crore via its IPO. Anchor book for the issue shall open on Wednesday, November 6.

Net proceeds from the issue shall be utilized towards augmentation of its capital base to strengthen solvency levels and general corporate purposes. Proceeds from OFS shall go to the selling shareholders of the company- Bupa Singapore Holdings and Fettle Tone LLP.

Niva Bupa Health Insurance Company had 14.73 million active lives insured as of March 31 2024. The company is present across 22 states and four union territories in India as of the given date. The overall GWP grew at a CAGR of 41.27 per cent, while GWP from retail health increased by 33.41 per cent from FY22 to FY24.

Niva Bupa Health Insurance Company reported a net loss of Rs 18.82 crore with a revenue of Rs 1,124.90 crore for the quarter ended on June 30. The company clocked a net profit of Rs 81.85 crore with a revenue of Rs 4,118.63 crore for the financial year ended on March 31, 2024.

Niva Bupa Health Insurance Company has reserved 75 per cent of the net for the qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will get 15 per cent of the offer. Remaining 10 per cent of the net offer shall be allocated towards the retail investors.

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 of the Niva Bupa Health Insurance IPO, while Kfin Technologies is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE on Thursday, November 14.