Niva Bupa gets Sebi nod for Rs 3,000-crore IPO

Private equity firm Niva Bupa Health Insurance (Max Bupa), led by True North, has received final observation from capital markets regulator Sebi to raise Rs 3,000 crore through an initial public offering (IPO).

The IPO will consist of a combination of a fresh issue of Rs 800 crore and an offer for sale of up to Rs 2,200 crore by the existing shareholders of the company.

Bupa Singapore Holdings will sell shares worth up to Rs 320 million, and Fettle Tone will sell shares worth up to Rs 1,880 million as part of the SFO.

The company intends to use the net proceeds from the fresh issue, amounting to Rs 625 crore, to increase its capital base to strengthen solvency levels and for general corporate purposes.

Niva Bupa is the second independent health insurer (SAHI) to target Indian bourses through an initial public offering (IPO), after Star Health & Allied Insurance Company.It is the third largest and second fastest growing SAHI in India, based on an overall health GDP of Rs 5,494 crore in FY2024, which grew at a CAGR of 41.37% between FY 2022 and 2024.

Niva Bupa Health Insurance Company is one of India’s largest and fastest growing independent health insurers (SAHI), with a gross direct written premium (GDPI) of Rs 5,499.43 crore in FY2024.

From fiscal 2022 to 2024, Niva Bupa’s overall GWP grew at a compound annual growth rate (CAGR) of 41.27%, while its retail health GWP grew at a CAGR of 33.41%. The company’s overall healthcare GDPI growth of 41.37% during this period is one of the highest among SAHIs and nearly doubles the industry average growth rate of 21.42%.

ICICI Securities, Morgan Stanley India, Kotak Mahindra Capital, Axis Capital, HDFC Bank and Motilal Oswal Investment Advisors are the lead managers of the issue, while KFin Technologies is the registrar.

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