Niva Bupa Health Insurance Company Ltd submitted its draft papers with the Securities and Exchange Board of India to raise Rs 3,000 crore via its maiden public offer. The health insurance firm, backed by True North, filed a draft red herring prospectus (DRHP) with the markets regulator to float its initial public offering (IPO).
The proposed listing comprises of a fresh issue of Rs 800 crore and an offer-for-sale (OFS) of up to Rs 2,000 crore by the existing shareholders and promoters, reported Moneycontrol.
British United Provident Fund (Bupa) owns a majority stake in the health insurance company.
The OFS includes up to 320 crore worth of shares being offered by Bupa Singapore Holdings Pte, and Rs 1,880 crore being offered by Fettle Tone LLP. Bupa owns a 62.27 per cent stake in the firm, while Fettle Tone holds a 27.86 per cent share in the company.
The issue has ICICI Securities, Morgan Stanley India, Kotak Investment Capital, HDFC Bank, and Axis Capital as the lead managers. The firm plans to utilise funds worth Rs 625 crore from the issue to boost capital base to help strengthen the solvency levels.
As of March end, 2024, the company clocked a gross written premium of Rs 5,607.57 crore and 14.73 million active insured individuals. It logged a CAGR of 41.27 per cent in its GWP in the 2023-24 fiscal year.
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The combined ratios of the firm improved to 98.76 per cent in 2024. As of March 31, 2024, it expanded its hospital network to 10,460, up from 8,562 in March end, 2022.
The insurer’s premium touched Rs 3,811.25 crore in the 2023-24 fiscal year (FY24), against Rs 2,662.75 crore a year earlier. The overall income of the firm jumped to Rs 4,118.63 crore in the fiscal under review, as compared to Rs 2,859.24 crore in the preceding 2022-23 fiscal year (FY23). The insurer clocked a net profit of Rs 81.85 crore in FY24, against Rs 1.25 crore logged in the same period a year earlier.
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