Niva Bupa Health Insurance Limited, formerly known as Max Bupa, has recently received the green light from the market regulator Securities and Exchange Board of India (SEBI) to raise Rs 3,000 crore through its upcoming initial public offering (IPO).
Breakdown of the IPO
The IPO is structured as a mix of fresh issue and an offer for sale.
The fresh issue component will raise Rs 800 crore, while the offer for sale will account for Rs 2,200 crore, with Bupa Singapore Holdings Pte Ltd. offering Rs 320 crore and Fettle Tone LLP offering Rs 1,880 crore.
Furthermore, the company plans to use Rs 625 crore from the fresh issuance to boost its capital reserves and strengthen solvency levels.
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The the book-running lead managers of the public issue will be ICICI Securities Limited, Morgan Stanley India Company Private Limited, Kotak Mahindra Capital Company Limited, Axis Capital Limited, HDFC Bank Limited and Motilal Oswal Investment Advisors Limited and the registrar of the offer will be KFin Technologies Limited.
Market position
With a Gross Direct Written Premium (GDPI) of Rs 5,499.43 crore in fiscal 2024, the company now holds a 16.24 per cent market share in the SAHI segment, according to a report by Redseer.
Financial Highlights
Niva Bupa's overall Gross Written Premium (GWP) grew at a compound annual growth rate (CAGR) of 41.27 per cent, significantly outpacing the industry's average growth of 21.42 per cent. Its retail health segment, in particular, expanded at a CAGR of 33.41 per cent.
