Niva Bupa Health Insurance Company has raised around ₹990 crore from anchor investors ahead of its initial public offering (IPO) that opens for subscription today. The health insurer allocated 13,37,83,783 equity shares at the upper end of the price band at ₹74 per share to 32 anchor investors, as per the exchange filing. Out of the total allocation, 27.78% were allocated to 6 domestic mutual funds.
The anchor book saw participation from foreign and domestic institutions, including some marquee investors such as Amansha Holdings, Zulia Investments, A91 Emerging Fund II LLP, Nippon Life, Tata Balance Advantage Fund, Axis Mutual Fund, Morgan Stanley Investment Fund.
The ₹2,200 crore IPO of the health insurer, formerly known as Max Bupa, will open today, while it will close on November 11. The issue of the global private equity firm True North-backed firm is a combination of fresh issue of 10.81 crore shares worth ₹800 crore and offer for sale of 18.92 crore shares aggregating to ₹1,400 crore. Under the OFS, Bupa Singapore Holdings Pte. Ltd and Fettle Tone LLP. Will be offloading their stake in the company.
Formed in 2008, Niva Bupa Health Insurance is a joint venture between the Bupa Group and Fettle Tone LLP that provides insurance in the health sector. Promoters Bupa Singapore Holdings Pte. Ltd and Bupa Investments Overseas Limited currently hold 62.27% in the company.
The company intends to utilise the net proceeds from the fresh issuance towards augmentation of its capital base to strengthen solvency levels and for general corporate purposes.
The lot size of the IPO is 200 equity shares and in multiples thereafter and the minimum application amount for retail investor is ₹14,800 for 1 lot, while the maximum is ₹192,400 for 13 lots.
As per the RHP filed with the SEBI, the company has reserved 75% of the net offer for qualified institutional buyers, 15% for non-institutional investors, and remaining 10% for retail individual bidders.
Niva Bupa is the second standalone health insurers (SAHI) to eye at the Indian bourses through IPO, after Star Health & Allied Insurance Company. Niva Bupa is India’s 3rd largest and 2nd fastest growing SAHI based on overall health (GDPI) of ₹5,499.43 crore in Fiscal 2024, growing at a CAGR of 41.37% from fiscal 2022 to 2024.
According to the Redseer report mentioned in the RHP, Niva Bupa's market share in the Indian SAHI market was 16.24% for fiscal 2024, based on retail health GDPI.
From fiscal 2022 to fiscal 2024, Niva Bupa's overall gross written premium (GWP) increased at a CAGR of 41.27%, while its retail health GWP grew at a CAGR of 33.41%. The company's overall health GDPI growth of 41.37% during this period is one of the highest among SAHIs and nearly double the industry's average growth rate of 21.42%, as reported by Redseer.
As of March 31, 2024, it had 143,074 agents, 210 physical branches across 22 states and 4 union territories in India. It distributes products through 64 banks and other corporate agents, including major institutions like HDFC Bank and Axis Bank, according to the Redseer Report.
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 and KFin Technologies Limited is the registrar of the offer.
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