Niva Bupa Health Insurance Limited, formerly known as Max Bupa, has recently filed a draft red herring prospectus (DRHP) with the capital market regulator Securities and exchange board of India (SEBI) for its Initial Public Offering (IPO) to mop up funds through a mix of fresh issuance and an offer for sale by existing shareholders.
About the IPO details
The IPO consists of a fresh issue of shares worth Rs 800 crore and an offer for sale amounting to Rs 2,200 crore by Promoter and Investor Selling Shareholders.
The offer for sale includes up to Rs 320 crore by Bupa Singapore Holdings Pte. Ltd. and up to Rs 1,880 crore by Fettle Tone LLP.
In addition, there is a possibility of a pre-IPO placement of up to Rs 160 crore, which would reduce the size of the fresh issue.
Allocation details
The IPO will be conducted through the Book Building Process which are as follows:
Qualified Institutional Buyers (QIBs): At least 75 per cent of the offer
Non-Institutional Bidders (NIBs): Up to 15 per cent of the offer
Retail Individual Bidders (RIBs): Up to 10 per cent of the offer
The offer for sale includes up to Rs 320 crore by Bupa Singapore Holdings Pte. Ltd. and up to Rs 1,880 crore by Fettle Tone LLP. | Photo credit: pixabay.com
Utilisation of Funds
The net proceeds from the fresh issue will be primarily used for strengthening the company's capital base, with Rs 625 crore allocated for this purpose, and the remainder for general corporate purposes.
About the company
Niva Bupa is a leading standalone retail health insurer (SAHI) in India, with a Gross Direct Written Premium (GDPI) of Rs 5,499.43 crore in Fiscal 2024, and also holds a 16.24 per cent market share.
Book-running lead managers
With 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 as the book-running lead managers, and KFin Technologies Limited as the registrar, Niva Bupa is set to list its shares on BSE and NSE.
