Niva Bupa Health Insurance Company, formerly Max Bupa Health Insurance, on Monday said it has fixed a price band of ₹70-74 per share for its initial public offer.
The company is looking to raise ₹2,200 crore from its public offer, which includes a fresh issue of shares worth ₹800 crore and an offer for sale of ₹1,400 crore by Bupa Singapore Holdings Pte Ltd, Fettle Tone LLP, promoters of the company.
Bupa Singapore Holdings owns a 62.19 per cent stake, while Fettle Tone holds a 26.8 per cent stake in the insurance firm. The company has reduced the size of the offer as it was earlier looking to raise ₹3,000 crore.
The proceeds will be used to augment its capital base, maintain and strengthen its solvency, and for general corporate purposes.
This will be the second standalone health insurer looking to float an IPO after Star Health and Allied Insurance.
Around 75 per cent of the issue size has been reserved for qualified institutional buyers, while 15 per cent for non-institutional buyers and the remaining 10 per cent for retail investors.
From fiscal 2022 to fiscal 2024, Niva Bupa’s overall GWP (gross written premium) increased at a compound annual growth rate (CAGR) of 41.27 per cent, while its retail health GWP grew at a CAGR of 33.41 per cent. For the three months ended June 30, 2024, the overall GWP grew at 30.84 per cent and its GWP from retail health grew at 31.99 per cent.
According to Redseer, Niva Bupa’s market share in the Indian stand-alone health insurance market was 16.24 per cent for fiscal 2024, based on retail health GDPI and for the five months ended August 31, 2024, stood at 17.29 per cent.
ICICI Securities Limited, Morgan Stanley India Company Limited, Kotak Mahindra Capital Company Limited, Axis Capital Limited, HDFC Bank Limited and Motilal Oswal Investment Advisors Limited are the book-running lead managers and KFin Technologies Limited is the registrar of the offer.
