Leading health insurer Niva Bupa has taken a significant step towards going public, filing its draft red herring prospectus (DRHP) with the Securities Exchange Board of India (SEBI) on Monday. The company aims to raise approximately Rs 3,000 crore ($360 million) through an initial public offering (IPO).
The draft papers submitted by True North-backed Niva Bupa Health Insurance Company Ltd outline a fresh issue of Rs 800 crore for the public. Alongside this, there is an offer for sale (OFS) of up to Rs 2,200 crore by existing shareholders. This OFS includes up to Rs 320 crore shares from Bupa Singapore Holdings Pte and Rs 1,880 crore from Fettle Tone LLP. Bupa Singapore Holdings currently holds a 62.27 per cent stake in the health insurer, while Fettle Tone LLP holds a 27.86 per cent stake.
Morgan Stanley India, Kotak Investment Capital, Axis Capital, ICICI Securities, and HDFC Bank have been appointed as the lead managers for the IPO, according to reports. Niva Bupa’s listing would mark it as the second stand-alone health insurer, after Star Health Insurance, to be listed on the Indian stock exchanges.
In September of last year, prominent private equity firm True North sold a 20 per cent stake in Niva Bupa Health Insurance to its partner Bupa for Rs 2,700 crore. This transaction valued the Indian firm at Rs 13,500 crore.
