Niva Bupa Health Insurance Launches ₹2,200 Crore IPO on November 7

Niva Bupa Health Insurance Company is set to debut on the stock market with a ₹2,200 crore initial public offering (IPO), opening on November 7 and closing on November 11. With shares priced between ₹70-74, the IPO comprises both a fresh equity issue and an offer-for-sale (OFS), marking Niva Bupa as the second standalone health insurer (SAHI) to list on Indian exchanges, following Star Health & Allied Insurance.

IPO Structure and Timelines

The IPO consists of a fresh equity issue worth ₹800 crore and an OFS totaling ₹1,400 crore, where key promoters Bupa Singapore Holdings and Fettle Tone LLP will divest portions of their holdings. Bupa Singapore Holdings currently holds a 62.19% stake, and Fettle Tone LLP holds 26.8%. Specifically, Fettle Tone LLP will offload shares worth ₹1,050 crore, while Bupa Singapore will sell shares valued at ₹350 crore.

The IPO process will kick off with the anchor book opening on November 6. The basis of allotment is scheduled for November 12, with shares expected to be credited to eligible demat accounts by November 13. Niva Bupa is projected to list on the BSE and NSE on November 14.

Purpose of the IPO

Proceeds from the fresh issue will be used to strengthen the company’s capital base, thereby improving solvency levels, with a portion earmarked for general corporate purposes. Niva Bupa’s growing footprint in India’s standalone health insurance market is a key driver behind the capital boost.

Allocation and Investor Segments

Of the total issue, 75% has been reserved for qualified institutional buyers, 15% for non-institutional investors, and the remaining 10% for retail investors. Leading financial institutions such as ICICI Securities, Morgan Stanley India, Kotak Mahindra Capital, Axis Capital, HDFC Bank, and Motilal Oswal Investment Advisors are serving as book-running lead managers, while KFin Technologies is the registrar for the IPO.

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Strong Market Position and Financial Performance

Niva Bupa ranks as India’s third-largest SAHI and the second fastest-growing based on its fiscal 2024 Gross Direct Premium Income (GDPI) of ₹5,494 crore, which reflects a compound annual growth rate (CAGR) of 41.37% from FY22 to FY24. The company’s Gross Written Premium (GWP) surged by 37.68% year-over-year, reaching ₹5,607.57 crore in FY24, with profit jumping from ₹12.54 crore in FY23 to ₹81.85 crore in FY24.

Technology-Driven Fraud Prevention and Distribution Network

Niva Bupa has employed machine learning algorithms to enhance fraud detection through predictive models, reducing investigation referrals and improving customer experience. The insurer operates with over 143,000 agents and 210 branches across 22 states and 4 union territories, supported by distribution partnerships with 64 banks, including major names like HDFC Bank and Axis Bank.

Market Outlook and Growth Potential

With its IPO, Niva Bupa aims to further strengthen its position in the fast-growing retail health insurance segment. The company’s significant growth trajectory—nearly double the industry average—positions it as a leader in India’s SAHI market, which is expected to expand as healthcare needs and awareness continue to rise in the country.

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