Niva Bupa Health Insurance is one of the largest and fastest-growing standalone retail health insurers in India. In the financial year 2024 (FY24), it achieved a gross direct written premium (GDPI) of Rs 5,499.43 crore. 

IPO Plans

Niva Bupa Health Insurance, previously known as Max Bupa Life Insurance, is planning to go public. The company has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to launch its initial public offering (IPO). The goal is to raise Rs 3,000 crore from investors through this IPO.

Breakdown of IPO

According to the draft papers, Niva Bupa plans to raise Rs 800 crore through the issuance of new shares. The remaining Rs 2,200 crore will be raised through an offer-for-sale (OFS) by its promoter Bupa Singapore Holdings and an existing shareholder, Fettle Tone LLP. The company might also consider a pre-IPO placement of securities up to Rs 160 crore. If this pre-IPO placement is completed, the size of the new share issue will be reduced accordingly.

Use of Proceeds

The funds raised from the new share issuance will be used to boost the company's capital base to improve solvency levels and for general corporate purposes. The proceeds from the OFS will go to the selling shareholders.

Allocation of Shares

In the IPO, 75% of the net offer will be available to qualified institutional buyers. Non-institutional bidders will have access to 15% of the shares. Retail investors will be allocated up to 10% of the shares.

Company Profile

Niva Bupa Health Insurance is a prominent player in India's standalone retail health insurance (SAHI) market. In FY24, it captured a market share of 16.24% in this sector. By March 31, 2024, the company had insured 14.73 million lives.

Niva Bupa has a widespread presence with over 143,074 agents and 210 physical branches across 22 states and 4 union territories in India. The company distributes its products through 64 banks and other corporate agents, including major institutions like HDFC Bank and Axis Bank.

Hospital Network

The company's network of hospitals has grown significantly. From 8,562 hospitals in March 2022, it expanded to 10,460 hospitals by March 2024. Niva Bupa's extensive network offers cashless treatment, with 326 hospitals being Preferred Partner Network (PPN) hospitals. These PPN hospitals provide additional benefits such as free ambulance services, designated relationship managers, and discounts on pharmacy, diagnostics, and consultations.

Key Managers and Listing

ICICI Securities, Morgan Stanley India Company, Kotak Mahindra Capital Company, Axis Capital, HDFC Bank, and Motilal Oswal Investment Advisors are the book-running lead managers for the IPO. KFin Technologies is the registrar of the offer. The equity shares of Niva Bupa Health Insurance are proposed to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Simplified Summary

- Company Background: Niva Bupa Health Insurance, previously Max Bupa Life Insurance, is a major player in India's health insurance market, showing significant growth.

- Financial Highlights: The company achieved a gross direct written premium of Rs 5,499.43 crore in FY24.

- IPO Plans: Niva Bupa plans to raise Rs 3,000 crore through its IPO. Rs 800 crore will come from new shares, and Rs 2,200 crore from selling shares by existing shareholders.

- Use of Funds: The money will be used to strengthen the company's capital base and for general purposes. Proceeds from the share sales will go to the selling shareholders.

- Share Allocation: 75% of the shares will go to institutional buyers, 15% to non-institutional bidders, and 10% to retail investors.

- Market Presence: The company has insured 14.73 million lives and has over 143,074 agents and 210 branches across India. It works with 64 banks, including major ones like HDFC Bank and Axis Bank.

- Hospital Network: Niva Bupa's hospital network has grown to 10,460, offering cashless treatment, with 326 hospitals providing additional benefits.

- Key Managers and Listing: ICICI Securities, Morgan Stanley, and others are managing the IPO. Shares will be listed on BSE and NSE.

By simplifying complex financial details and focusing on the essential information, this summary makes it easier to understand Niva Bupa Health Insurance's IPO plans and its overall market presence.

Share On :