Niva Bupa Health sets price band of Rs 70-74 a share for its IPO

The anchor book will open on November 6, while the issue will close on November 11

Private health insurer Niva Bupa Health Insurance Company has set a price band of Rs 70-74 a share for its initial public offering that will start for subscription on November 7.

The anchor book will open on November 6, while the issue will close on November 11. Basis of allotment of IPO will be on November 12 and shares will be credited to demat accounts of eligible investors by November 13. The stock will list on exchanges on November 14.

The Rs 2,200-crore IPO is a combination of fresh issue of Rs 800 crore and an offer-for-sale of Rs 1,400 crore worth of shares by promoters.

The Gurugram-based health insurance company will utilise Rs 800 crore out of the net fresh issue proceeds towards augmentation of its capital base to maintain and strengthen its solvency levels by investing in instruments.

Promoters Bupa Singapore Holdings Pte and global private equity firm True North-owned Fettle Tone LLP will sell Rs 350 crore and Rs 1,050 crore worth shares in the offer-for-sale respectively.

Bupa Singapore increased its offering size from Rs 320 crore and Fettle Tone reduced from Rs 1,880 crore earlier mentioned in the draft papers filed in June.

Promoters hold 89.07 percent shareholding in the company, including Bupa Singapore Holdings Pte's 62.19 percent stake, and Fettle Tone LLP 26.80 percent.

Amongst public shareholders, India Business Excellence Fund IV is the biggest shareholder with 2.81 percent stake, followed by V-Sciences Investments Pte (2.6 percent), SBI Life Insurance Company (1.3 percent), and A91 Emerging Fund II LLP (1.03 percent).

Niva Bupa Health Insurance is one of India’s largest standalone health insurers (SAHI) based on overall health GDPI (gross direct premium income) of Rs 5,494.43 crore in fiscal 2024. Its overall gross written premium (GWP) grew at a CAGR of 41.27 percent and GWP from retail health grew at a CAGR of 33.41 percent during FY22-FY24, while its GWP in the quarter ended June 2024 increased by 30.84 percent over the same period previous fiscal.

It had a market share of 17.29 percent in the Indian SAHI market in the current fiscal 2025, increasing from 16.24 percent in the previous fiscal 2024, based on retail health GDPI.

On the financials front, the insurance company has recorded a net profit at Rs 81.85 crore in the fiscal 2024, increasing significantly from Rs 12.5 crore in the previous fiscal, but the operating profit dropped sharply to Rs 188 crore from Rs 350.9 crore during the same period.

It has posted a loss of Rs 18.8 crore in the three-month period ended June 2024, narrowing from a loss of Rs 72.2 crore in the year-ago period, however, its operating profit stood at Rs 23.2 crore an against operating loss of Rs 13.4 crore in the same period.

The book running lead managers that are handling the issue are ICICI Securities, Morgan Stanley India Company, Kotak Mahindra Capital Company, Axis Capital, HDFC Bank, and Motilal Oswal Investment Advisors. KFin Technologies is the registrar to the offer.