Niva Bupa Raises Rs 990 Cr Ahead of IPO

New Delhi, Nov 6 (PTI) Niva Bupa Health Insurance Company Ltd, formerly Max Bupa Health Insurance Company, on Wednesday said it has mobilised Rs 990 crore from anchor investors a day before its initial share-sale opening for public subscription.

Foreign and domestic institutions who were allotted shares in the anchor round include Zulia Investments Pte, Amansa Holdings, A91 Emerging Fund II LLP, Morgan Stanley, Fidelity and Government Pension Fund Global, according to a circular uploaded on BSE's website.

Additionally, Nippon India Mutual Fund (MF), Axis MF, Tata MF and DSP MF participated in the anchor round.

As per the circular, Niva Bupa has allotted 13.38 crore shares to 32 funds at Rs 74 apiece. This aggregates the transaction size to Rs 990 crore.

The issue, with a price band of Rs 70-74 per share, will open for public subscription on November 7 and conclude on November 11.

The Rs 2,200-crore IPO is a combination of fresh issuance of equity shares worth Rs 800 crore and an offer for sale of up to Rs 1,400 crore by promoters. The company reduced the issue size as it was earlier looking to raise Rs 3,000 crore.

Under the OFS, Fettle Tone LLP will sell shares to the tune of Rs 1,050 crore, and Bupa Singapore Holdings Pte Ltd will offload shares valued at Rs 350 crore.

At present, Bupa Singapore Holdings Pte owns a 62.19 per cent stake, while Fettle Tone LLP holds a 26.8 per cent stake in the insurance firm.

The company intends to utilise the net proceeds from the fresh issuance towards boosting its capital base to strengthen solvency levels, and a portion will be used for general corporate purposes.

This will be the second standalone health insurer to float an IPO after Star Health & Allied Insurance Company.

The company said that 75 per cent of the issue size has been reserved for qualified institutional buyers, 15 per cent for non-institutional buyers and the remaining 10 per cent for retail investors.

Niva Bupa Health Insurance Company is one of the leading standalone retail health insurers (SAHI) in India, with a Gross Direct Written Premium (GDPI) of Rs 5,499.43 crore in fiscal 2024.

The insurance firm's Gross Written Premium (GWP) increased by 37.68 per cent to Rs 5,607.57 crore in fiscal 2024 from Rs 4,073.03 crore in fiscal 2023. Further, profit surged to Rs 81.85 crore in fiscal 2024 from Rs 12.54 crore in fiscal 2023.

ICICI Securities, Morgan Stanley India Company, Kotak Mahindra Capital Company, Axis Capital, HDFC Bank and Motilal Oswal Investment Advisors are the book-running lead managers to the offer.

The equity shares are proposed to be listed on the BSE and NSE.