Upcoming IPO (Image source: iStockphoto)
health insurer Niva Bupa Health Insurance Company Ltd and Paras Healthcare Ltd, which runs the chain of hospitals under the brand name ‘Paras Health’, has received SebiWe will press ahead to raise funds through initial public offerings (IPOs), an update with the markets regulator showed on Monday.
Niva Bupa Health Insurance Company seeks to raise Rs 3,000 crore through an initial share sale involving a fresh issue of shares and Sale offer (OFS) component. Paras Healthcare aims to raise Rs 400 crore through a fresh share issue, along with an OFS component.
The two companies, which filed their draft IPO documents with the Securities and Exchange Board of India (Sebi) during July-August, got their observations on October 18, the update shows.
Niva Bupa Health Insurance and Paras Healthcare get SEBI’s nod to float their IPOs. Health insurer Niva Bupa Health Insurance Company Ltd and Paras Healthcare Ltd, which runs the hospital chain under the brand ‘Paras Health’, have received Sebi’s nod to raise funds through initial public offerings (IPO), it showed an update with the markets regulator on Monday.
Niva Bupa Health Insurance Company is looking to raise Rs 3,000 crore through an initial share sale involving a fresh issue of shares and an offer for sale (OFS) component. Paras Healthcare aims to raise Rs 400 crore through a fresh share issue, along with an OFS component.
The two companies, which filed their draft IPO documents with the Securities and Exchange Board of India (Sebi) during July-August, got their observations on October 18, the update shows.
In Sebi parlance, getting observation means you can bring public issues to the fore. Shares of both the companies proposed to be listed on the BSE and NSE.
According to drafts, the proposed IPO of Niva Bupa Health Insurance Company Ltd, formerly Max Bupa Health Insurance Company, is a combination of fresh issue of shares worth Rs 800 crore and OFS of shares valued at Rs 2,200 crore by a promoter and an investing shareholder.
According to the SFO, investor Fettle Tone LLP will sell shares worth Rs 880 million and promoter Bupa Singapore Holdings Pte Ltd will offload shares worth Rs 320 million.
Niva Bupa is primarily controlled by Bupa, an international healthcare company based in the United Kingdom. Currently, Bupa Singapore Holdings Pte holds a 62.27 per cent stake, while Fettle Tone LLP holds a 27.86 per cent stake in the insurance company.
The company intends to utilize the net proceeds of the fresh issue amounting to Rs 625 crore to increase its capital base and strengthen solvency levels, with a portion to be utilized for general corporate purposes.
This will be the second independent health insurer looking to launch an initial public offering (IPO), following Star Health & Allied Insurance Company.
The proposed IPO by Paras Healthcare is a combination of a fresh issue of shares of up to Rs 400 crore and an OFS of up to Rs 1.5 crore by a promoter and an investing shareholder, according to the draft prospectus Red Herring (DRHP).
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