IPO alert: Niva Bupa Health Insurance files draft prospectus to raise Rs 3,000 crore

Niva Bupa is the 2nd standalone health insurer planning to float an IPO

Niva Bupa IPO

Niva Bupa Health Insurance Company Ltd has filed a draft red herring prospectus (DRHP) with SEBI to raise Rs 3,000 crore through an initial public offering.

The shares will be listed on the BSE and NSE. The book-running lead managers to the issue are ICICI Securities, Morgan Stanley India Company, Kotak Mahindra Capital Company, Axis Capital, HDFC Bank and Motilal Oswal Investment Advisors.

This marks the second time a standalone health insurer is planning to float an IPO with the first one being Star Health & Allied Insurance Company.

About Niva Bupa

Formerly known as Max Bupa Health Insurance Company, Niva Bupa has 210 physical branches across 22 states and four UTs. It is majorly controlled by Bupa, a UK-based global healthcare firm. Bupa Singapore Holdings Pte owns 62.27 per cent stake while Fettle Tone LLP holds 27.86 per cent stake in the insurance firm.

What does the IPO comprise?

The proposed IPO, with a face value of Rs 10 each, is a combination of fresh issuance of Rs 800 crore worth of equity shares as well as and an offer for sale (OFS) of up to Rs 2,200 crore by a promoter and an investor shareholder, according to the DRHP filed on Saturday.

Out of the offer for sale, investor Fettle Tone LLP will offload shares amounting to Rs 1,880 crore while promoter Bupa Singapore Holdings Pte Ltd will raise Rs 320 crore from its side.

Niva Bupa said it is also mulling to issue securities worth up to Rs 160 crore as a part of "pre-IPO placement". If this materialises, the fresh issue size will be reduced.

What will the proceeds be used for?

The net proceeds from the IPO to the extent of Rs 625 crore will be utilised to bolster the company's capital base and improving its solvency levels while a portion will be used for general corporate purposes.


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