Niva Bupa Health Insurance Company has established a price band of Rs 70-74 per share for its upcoming initial public offering (IPO), set to open on November 7 and close on November 11. The anchor book will open on November 6, with the basis of allotment scheduled for November 12. Eligible investors will see shares credited to their demat accounts by November 13, and trading is expected to commence on November 14.
The Rs 2,200-crore IPO includes a fresh issue of Rs 800 crore and an offer-for-sale worth Rs 1,400 crore, with promoters Bupa Singapore Holdings Pte and private equity firm True North-owned Fettle Tone LLP offloading Rs 350 crore and Rs 1,050 crore worth of shares, respectively.
Niva Bupa, headquartered in Gurugram, plans to use Rs 800 crore from the fresh issue proceeds to bolster its capital base and improve solvency. The offer structure saw adjustments from the draft papers, with Bupa Singapore increasing its sale portion from Rs 320 crore, while Fettle Tone’s offering was reduced from Rs 1,880 crore.
As of the latest shareholding structure, promoters hold 89.07% of Niva Bupa, with Bupa Singapore at 62.19% and Fettle Tone LLP at 26.80%. Key public shareholders include India Business Excellence Fund IV (2.81%), V-Sciences Investments Pte (2.6%), SBI Life Insurance Company (1.3%), and A91 Emerging Fund II LLP (1.03%).
Niva Bupa is amongst the largest standalone health insurers in the country, with gross direct premium income of Rs 5,494.43 crore in FY24. The company’s overall GWP grew 41.27% CAGR from FY22 to FY24, underpinned by retail health premiums that increased 33.41% CAGR during the same period. The company’s market share in the SAHI sector went up to 17.29% as of FY25 from 16.24% as of FY24.
On the financial front, Niva Bupa said its net profit was ₹ 81.85 crore during the fiscal year 24 compared with ₹ 12.5 crores in the previous fiscal. At the same time, operating profit sharply fell from ₹ 350.9 crore to ₹ 188 crore. For the quarter ended June 2024, Niva Bupa reduced its net loss to Rs 18.8 crore from Rs 72.2 crore in the corresponding quarter last year, after booking an operating profit of Rs 23.2 crore against a Rs 13.4 crore operating loss in the same quarter last year.
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Source: Moneycontrol
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