Niva Bupa Health Insurance's ₹2,200 crore IPO opens November 7
What's the story
Niva Bupa Health Insurance Company, one of India's leading private health insurers, has announced its ₹2,200 crore initial public offering (IPO). The company has filed a red herring prospectus with the Registrar of Companies and will open its IPO for subscription on November 7. The offering includes a fresh issuance of equity shares worth ₹800 crore and an offer-for-sale (OFS) of shares worth ₹1,400 crore by the promoters. The IPO price band details are yet to be announced.
Share sale
Promoters to sell shares in upcoming IPO
The promoters of Niva Bupa Health Insurance—Bupa Singapore Holdings Pte and Fettle Tone LLP—plan to sell shares worth ₹350 crore and ₹1,050 crore, respectively, in the upcoming IPO. Currently, the promoters hold an 89.07% stake in the company with Bupa Singapore Holdings Pte owning a 62.19% stake and Fettle Tone LLP holding a 26.8% stake.
Subscription timeline
Niva Bupa's IPO price band and subscription details
The price band for Niva Bupa Health Insurance's public issue will be announced by the company on Monday. The anchor book for institutional investors will open on November 6, while the issue will close for all investors on November 11. After the issue closes, the company intends to finalize the basis of allotment of IPO shares by November 12 and credit them to eligible investors' demat accounts by November 13.
Trading initiation
Niva Bupa to commence trading on BSE and NSE
After the allotment date, Fettle Tone will cease to be a promoter of Niva Bupa Health Insurance under the IRDAI Registration and Transfer Regulations. It will become an investor instead. The company's shares will begin trading on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on November 14. It will become the fourth health insurer to be listed for trading on the exchanges after Star Health and Allied Insurance, ICICI Lombard General Insurance, and The New India Assurance Company.
Financials & management
Niva Bupa's financial performance and IPO management
In fiscal 2024, Niva Bupa Health Insurance posted a net profit of ₹81.85 crore, a sharp rise from the last fiscal's ₹12.5 crore. However, the company's operating profit plummeted to ₹188 crore from ₹350.9 crore in the same period. The IPO is being handled by ICICI Securities, Morgan Stanley India Company, Kotak Mahindra Capital Company, Axis Capital, HDFC Bank and Motilal Oswal Investment Advisors with KFin Technologies as the offer's registrar.