Niva Bupa: Health Insurer Filed DRHP with SEBI for Rs 3000 Crore

Niva Bupa Limited filed a DRHP and will be coming up with its public issue in the upcoming time; the public issue will be offering a 100% book-built offer. This upcoming IPO is offering a fresh issue worth up to Rs 800 Crore of equity shares and an offer for sale worth up to Rs 2200 Crore of equity shares. Out of which, Rs 320 crore worth of shares by Bupa Singapore Holdings Pte and Rs 1,880 crore by Fettle Tone LLP are offered as an offer for sale. As of now, the ownership structure of the company is divided between two stakeholders: Bupa Singapore Holdings holds a majority share of 62.27%, and Fettle Tone LLP holds a stake of 27.86%. The Application for public issue and subscription opening/closing dates and other important dates will be declared soon. At the same time, the public issue price band at which you can bid will be declared soon.

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About Niva Bupa Health Insurance Limited

Niva Bupa Health Insurance Company Ltd. is a collaborative venture between two entities: the Bupa Group and Fettle Tone LLP. Previously operating under the name Max Bupa Health Insurance Company Limited, this partnership combines international expertise with local market knowledge. The Bupa Group, headquartered in the United Kingdom, brings extensive healthcare experience to the table, having served millions of customers across numerous countries for over half a century. On the other hand, Fettle Tone LLP is under the management of True North and is a significant player in India's private equity landscape, ensuring a strong domestic presence and understanding of the local insurance market.

Niva Bupa Limited IPO Objectives

Niva Bupa plans to allocate the Rs 2,200 crore raised from its initial public offering to support its financial foundation and improve solvency ratios. The company also anticipates that going public will raise its profile in the market, attracting more customers and investors. The listing will provide existing shareholders with an opportunity to easily buy or sell their stakes in the company.

Financials of the Company

For FY24, total income for the fiscal year was Rs 4118.63 crore, up 44.0% from Rs 2859.24 crore the year before. Net profit for the year was Rs 81.85 crore, compared to Rs 1.25 crore a year ago, showing a significant rise. The firm incurred claims worth Rs 2249.54 crore in FY24, compared to Rs 1439.31 crore last year, an increase of 56.3%. The claims ratio stood at 59.02%, up from 54.05% the previous year.

Lead manager(s), Registrar of IPO & Directors of Company

The IPO is managed by several giants, including ICICI Securities, Morgan Stanley, Kotak Mahindra Capital, and Axis Capital, which is the book-running lead manager of this public issue. KFin Technologies Private Limited has been appointed as the registrar for the issue, while the company's board of directors include Dinesh Kumar Mittal, Chandrashekhar Bhaskar Bhave and Pradeep Pant.

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