Niva Bupa IPO To Hit Markets As Health Insurance Firm Gets SEBI’s Final Approval To Raise Rs 3,000 Crore

Niva Bupa IPO: Niva Bupa Health Insurance Ltd, one of India’s largest standalone retail health insurers, received the Securities and Exchange Board of India’s (SEBI) final nod for raising Rs 3,000 crore from the initial public offering (IPO), a release stated on Monday.

The company had submitted the red herring prospectus to SEBI in June earlier this year and was waiting financial market regulator’s nod to go ahead with the IPO.

With a face value of Rs 10 per share, the IPO included a fresh issue of Rs 800 Crore, an offer for sale (OFS) for Rs 320 crore by Bupa Singapore Holdings Pte Ltd, and up to Rs 1,880 crore by Fettle Tone LLP, news website Mint reported.

The company, which is considered one of the fastest-growing health insurance firms in India, is raising money for the augmentation of its capital base to strengthen solvency levels and general corporate purposes, the red herring prospectus stated.

Bupa Singapore Holdings Pte. Ltd. is selling 1,069,987,767 shares, representing 62.27% of its stake in Niva Bupa. Bupa Investments Overseas Limited is not selling any shares, while investor Fettle Tone LLP is also participating in the share sale.

ICICI Securities, Morgan Stanley India, Kotak Mahindra Capital, Axis Capital, HDFC Bank, and Motilal Oswal Investment Advisors are acting as the book-running lead managers for the offering, with KFin Technologies appointed as the registrar.

Niva Bupa Company Profile
Niva Bupa Insurance Ltd is a standalone health insurer (“SAHI”) strategically focused on the retail health market. According to the Redseer Report, it is one of India’s largest and fastest growing SAHIs based on overall health insurance gross direct premium income (“GDPI”) of ₹54,944.28 million in Fiscal 2024. Its overall growth in health GDPI from Fiscals 2022 to 2024 of 41.37% is one of the highest growths among SAHIs and is almost double the industry’s average, according to the Redseer. 

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