Health Insurer Niva Bupa files draft prospectus for Rs. 3000 Cr IPO.

01 July 2024

Niva Bupa Health Insurance Company Ltd, backed by True North, has filed a draft red herring prospectus with the Securities Exchange Board of India to raise Rs 3,000 crore through an initial public offering.

The prospectus includes a fresh issue of Rs 800 crore and an offer for sale of up to Rs 2,200 crore by its existing shareholders and promoters. The company's majority ownership lies with the British United Provident Fund (Bupa).

The offer for sale comprises up to Rs 320 crore worth of shares by Bupa Singapore Holdings Pte and Rs 1,880 crore by Fettle Tone LLP. Presently, Bupa Singapore Holdings holds a 62.27 percent stake, while Fettle Tone LLP holds a 27.86 percent stake in the firm.

The lead managers to the issue are ICICI Securities, Morgan Stanley India, Kotak Investment Capital, Axis Capital, and HDFC Bank.

The company stated that the proceeds from the fresh issue, amounting to Rs 625 crore, will be utilized to bolster the capital base and strengthen solvency levels.

The insurer aims to become India's preferred health insurance platform, offering a comprehensive ecosystem through the 'NivaBupa Health' app and website.

With 14.73 million active insured lives as of March 31, 2024, its gross written premium reached Rs 5,607.57 crore from Rs 4,073.03 crore a year ago. The GWP grew at a CAGR of 41.27% from Fiscal 2022 to 2024, while combined ratios improved annually: 98.76% in 2024, 97.13% in 2023, and 107.41% in 2022. The network of hospitals expanded to 10,460 by March 31, 2024, up from 8,562 on March 31, 2022.

For FY24, the premium earned was Rs 3,811.25 crore compared to Rs 2,662.75 crore a year ago. The total income for the fiscal year was Rs 4,118.63 crore compared to Rs 2,859.24 crore from a year ago. The net profit for the year was Rs 81.85 crore versus Rs 1.25 crore a year ago.