Niva Bupa Health Insurance IPO: Rs 2,200 Cr Issue To Open On November 07; Price Band Fixed

For its initial public offering, Niva Bupa Health Insurance Company Limited, one of India's largest and fastest-growing standalone retail health insurers (SAHI) according to total health GDPI in Fiscal 2024, has set the price band of Rs 70/- to Rs 74/- each equity share of face value Rs 10/-each. The Niva Bupa Health Insurance IPO is a book-built issue for Rs 2,200.00 crores. The initial public offering consists of a fresh issuance of 10.81 crore shares worth Rs 800.00 crores and an offer for sale (OFS) of 18.92 crore shares to raise Rs 1,400.00 crores by Bupa Singapore Holdings Pte. Ltd., Fettle Tone LLP.

The company's initial public offering (IPO) will go live for subscriptions on Thursday, November 07, 2024, and end on Monday, November 11, 2024. On Tuesday, November 12, 2024, the allocation of shares for the Niva Bupa Health Insurance IPO is anticipated to be finalised. The proposed listing date for Niva Bupa Health Insurance's initial public offering (IPO) is set for Thursday, November 14, 2024, on the BSE and NSE.

Its fresh issue segment would generate Rs 1,500 crore in proceeds, which will be used for general corporate objectives as well as capital base expansion to sustain and improve solvency levels. KFin Technologies Limited is the offer's registrar, while ICICI Securities Limited, Morgan Stanley India Company Limited, Kotak Mahindra Capital Company Limited, Axis Capital Limited, HDFC Bank Limited, and Motilal Oswal Investment Advisors Limited are the book-running lead managers of the IPO.

No less than 75% of the net offer will be proportionately available for allocation to qualified institutional buyers through the book-building process, while no more than 15% will be available for allocation to non-institutional bidders and no more than 10% will be available for allocation to retail individual bidders.

Based on the Overall Health GDPI of Rs 54.94 billion in fiscal 2024, which increased at a CAGR of 41.37% from fiscal 2022 to 2024-nearly twice the industry average-Niva Bupa is the third-largest and second-fastest expanding SAHI in India. Niva Bupa's retail health GWP expanded at a compound annual growth rate (CAGR) of 33.41% between fiscal 2022 and fiscal 2024, while the company's total GWP climbed at a CAGR of 41.27%. Redseer noted that the company's total health GDPI growth of 41.37% over this time was nearly double the industry average growth rate of 21.42%, making it one of the highest among SAHIs.

Based on retail health GDPI, Niva Bupa's market share in the Indian SAHI market was 16.24% for fiscal 2024 and 17.29% for the five months ending August 31, 2024, according to Redseer. Through its health insurance products and services, Niva Bupa Health Insurance Company Limited aims to give the best healthcare services by giving clients access to a comprehensive health ecosystem that helps them manage their healthcare journey. Niva Bupa has insured 14.99 million lives as of June 30, 2024.