Niva Bupa Health Insurance Sets IPO Price Band at Rs 70-74 Per Share, Opens Thursday
Niva Bupa Health Insurance Company has officially set the price band for its highly anticipated initial public offering (IPO) at Rs 70 to Rs 74 per equity share, with a face value of Rs 10. The IPO is scheduled to open for subscription on Thursday, [Date], and will conclude on Monday, [Date]. Investors will be able to bid for a minimum of 200 equity shares, and in multiples of 200 thereafter.
This IPO represents a significant milestone for Niva Bupa, as it seeks to raise a substantial amount of capital. The offering comprises a fresh issue of up to Rs 800 crore and an offer of sale (OFS) of up to Rs 1,400 crore by existing shareholders, Bupa Singapore Holdings Pte. Ltd. and Fettle Tone LLP.
Niva Bupa has outlined that the proceeds from its fresh issuance will be utilized for two primary purposes: augmenting its capital base to ensure and strengthen its solvency levels, and for general corporate purposes. These strategic objectives are aimed at solidifying Niva Bupa’s financial foundation and supporting its continued growth trajectory.
The IPO is being conducted through a book-building process, which involves a predetermined allocation of shares to various investor categories. A minimum of 75 per cent of the net offer will be allocated on a proportionate basis to qualified institutional buyers (QIBs). Non-institutional bidders will be eligible for a maximum of 15 per cent of the offer, while retail individual bidders will have access to a maximum of 10 per cent.
Niva Bupa has established itself as a prominent player in the Indian health insurance market, holding the position of the third largest and second fastest-growing standalone health insurance company (SAHI) based on overall health gross direct premium income (GDPI). In fiscal 2024, the company recorded a GDPI of Rs 54.94 billion, demonstrating a robust compound annual growth rate (CAGR) of 41.37 per cent from fiscal 2022 to 2024, almost double the industry average.
As of June 30, Niva Bupa has successfully insured a total of 14.99 million lives, underscoring its substantial reach and market penetration. According to independent market research firm Redseer, Niva Bupa’s market share in the Indian SAHI market for Fiscal 2024 was 16.24 per cent based on retail health GDPI. This figure further increased to 17.29 per cent for the five months ended August 31.
The IPO is expected to generate considerable interest from investors, particularly given Niva Bupa’s strong financial performance, market position, and growth prospects. Investors keen on participating in the IPO are advised to carefully review the prospectus and consult with their financial advisors to make an informed investment decision.
