The Securities and Exchange Board of India (SEBI) has granted approval for initial public offerings (IPOs) by Niva Bupa Health Insurance Company and Paras Healthcare. Observation letters, signalling clearance for the companies to proceed with their IPO plans, were issued by the regulator on October 18.
Niva Bupa filed its draft red herring prospectus on June 29, while Paras Healthcare submitted its paperwork on July 31. With the SEBI green light, the companies are set to raise funds from the capital markets.
Niva Bupa Health Insurance IPO Details
Backed by global private equity firm True North, Niva Bupa plans to raise ₹3,000 crore through the IPO. The offering will include a fresh issuance of equity shares worth ₹800 crore and an offer-for-sale (OFS) of ₹2,200 crore, with promoter Bupa Singapore Holdings Pte selling shares worth ₹320 crore and investor Fettle Tone LLP offering shares worth ₹1,880 crore.
Niva Bupa is a joint venture between the UK-based Bupa Group and Fettle Tone LLP. As of this date, Bupa Singapore Holdings has a stake of 62.27%, while Fettle Tone LLP owns 27.86%, with the rest held by public shareholders. Thus, fresh issue proceeds would be utilised to strengthen the capital base to improve the solvency position. The balance to be utilized for general corporate purposes.
In case the IPO of Niva Bupa goes through, it will be the fourth health insurance company to get traded on Indian exchanges after Star Health and Allied Insurance, ICICI Lombard General Insurance, and The New India Assurance.
The approval issued by SEBI is a major breakthrough for both Niva Bupa and Paras Healthcare in advancing towards forthcoming stock market listings.
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Source: Moneycontrol
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