True North-backed Niva Bupa Health Insurance Company Ltd has submitted a draft red herring prospectus to the Securities Exchange Board of India (SEBI) for an initial public offering (IPO) aimed at raising ₹3,000 Crore.
The IPO comprises a fresh issue of ₹800 Crore and an offer for sale of up to ₹2,200 Crore by existing shareholders and promoters. The majority stakeholder, British United Provident Fund (Bupa), plans to sell up to ₹320 Crore worth of shares through its subsidiary Bupa Singapore Holdings Pte, while Fettle Tone LLP, holding a significant stake, will offload shares worth ₹1,880 Crore.
ICICI Securities, Morgan Stanley India, Kotak Investment Capital, Axis Capital, and HDFC Bank have been appointed as lead managers to the issue.
Proceeds from the fresh issue, amounting to ₹625 Crore, will primarily bolster the company’s capital base to enhance solvency levels.
Niva Bupa Health Insurance aims to establish itself as India’s leading health insurance platform, offering comprehensive services through its ‘NivaBupa Health’ app and website. As of March 31, 2024, the company covered 14.73 million active insured lives and reported a gross written premium (GWP) of ₹5,607.57 Crore, marking a significant increase from ₹4,073.03 Crore in the previous fiscal year. The GWP grew at a compound annual growth rate (CAGR) of 41.27% from Fiscal 2022 to 2024.
The company expanded its network to 10,460 hospitals by March 31, 2024, up from 8,562 hospitals in the corresponding period last year. In FY24, it earned a premium of ₹3,811.25 Crore, compared to ₹2,662.75 Crore in FY23, with total income reaching ₹4,118.63 Crore from ₹2,859.24 Crore previously. Net profit for FY24 stood at ₹81.85 Crore, a significant increase from ₹1.25 Crore in the previous year.
However, the firm also recorded higher claims, amounting to ₹2,249.54 Crore in FY24 compared to ₹1,439.31 Crore in FY23, resulting in a claims ratio of 59.02% as against 54.05% in the previous fiscal year.
The IPO from Niva Bupa Health Insurance is part of a broader trend where more than 100 companies have tapped the primary market to raise approximately $4 billion through public issues in the current year, reflecting a substantial increase from the previous year.
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