The private health insurer Niva Bupa Health Insurance Company has chosen to open its Rs 3,000 crore initial share sale for subscription on November 7.
IPO size and structure
The IPO consists of both a new issue of equity shares valued at Rs 800 crore and a promoter's offer to sell shares valued at Rs 2,200 crore.
In the offer-for-sale, promoters Bupa Singapore Holdings Pte and Fettle Tone LLP, a global private equity firm owned by True North, will sell shares valued at Rs 350 crore and Rs 1,050 crore, respectively.
Promoters own 89.07 per cent of the company's shares, which includes 26.80 per cent held by Fettle Tone LLP and 62.19 per cent held by Bupa Singapore Holdings Pte.
Price band details
The company will reveal the price range for the public offering by this upcoming Monday. On November 6, the institutional investor anchor book will open, and on November 11, the issue will close for all investors.
GDPI (gross direct premium income)
According to its overall health GDPI (gross direct premium income) of Rs 5,494.43 crore in fiscal 2024, Niva Bupa Health Insurance is among the biggest standalone health insurers (SAHI) in India.
During FY22–FY24, its gross written premium (GWP) increased at a compound annual growth rate (CAGR) of 41.27 per cent, and its retail health GWP increased at a CAGR of 33.41 per cent. In the quarter ending in June 2024, its GWP increased by 30.84 per cent compared to the same period in the previous fiscal year.
Company financials
The insurance company's net profit for the fiscal year 2024 was Rs 81.85 crore, a considerable increase over the previous fiscal year's net profit of Rs 12.5 crore. However, operating profit fell precipitously to Rs 188 crore from Rs 350.9 crore during the same period.
It reported a loss of Rs 18.8 crore for the three months that ended in June 2024, which was less than the loss of Rs 72.2 crore for the same period the previous year. Nevertheless, its operating profit for the same period was Rs 23.2 crore, compared to an operating loss of Rs 13.4 crore.
