Niva Bupa Health Insurance IPO: Erstwhile-Max Bupa raises ₹990 crore from anchor investors ahead of subscription

Niva Bupa Health Insurance IPO: Niva Bupa Health Insurance Company Ltd raised ₹990 crore from anchor investors ahead of its IPO subscription opening for bidding. Formerly Max Bupa Health Insurance Company, the private insurer's initial public offering (IPO) is all set to hit the primary market for its three-day subscription on Thursday, November 7 and closes on Monday, November 11, 2024

The Delhi-based health insurer allocated 13,37,83,783 equity shares at ₹74/share to anchor investors, which aggregates the transaction size to ₹990 crore. Foreign and domestic institutions who participated in the round included Amansha Holdings, Zulia Investments, Nippon Life, Tata Balance, Axis Mutual Fund, Morgan Stanley Investment Fund among others. Six domestic mutual funds were allocated shares out of the 32 anchor investors. 

Also Read: Niva Bupa IPO Day 1: Check GMP, subscription status, review, other key details. Should you subscribe or skip?

Niva Bupa Health Insurance IPO Details

Niva Bupa Health Insurance IPO is a book built issue of ₹2,200 crore. The issue is a combination of fresh issue of 10.81 crore shares aggregating to ₹800.00 crores and offer for sale (OFS) of 18.92 crore shares aggregating to ₹1,400.00 crore. Niva Bupa Health Insurance IPO price band is set at ₹70 to ₹74 per share.

Niva Bupa Health Insurance IPO opens for subscription on November 7, 2024 and closes on November 11, 2024. The allotment for the Niva Bupa Health Insurance IPO is expected to be finalized on Tuesday, November 12, 2024. Shares of Niva Bupa Health Insurance will list on BSE, NSE with tentative listing date fixed as Thursday, November 14, 2024.

Also Read: Niva Bupa IPO: Erstwhile-Max Bupa files DRHP for public issue

The minimum lot size for an application is 200 shares. ICICI Securities Limited, Morgan Stanley India Company Limited, Kotak Mahindra Capital Company Limited, Axis Capital Limited, HDFC Bank Limited and Motilal Oswal Investment Advisors Limited are the book-running lead managers and KFin Technologies Limited is the registrar of the offer.

Under the OFS, Fettle Tone LLP will sell shares to the tune of ₹1,050 crore, and Bupa Singapore Holdings Pte Ltd will offload shares valued at ₹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. Bupa Singapore Holdings Pte. Ltd and Fettle Tone LLP are the two promoters selling their shareholding as the company lists itself on Dalal Street.

Also Read: Niva Bupa Health Insurance IPO declares price band at ₹70 to ₹74. GMP

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. Niva Bupa Health Insurance 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 Details

The health insurance company, set up in 2008, is a joint venture between the Bupa Group and Fettle Tone LLP which provides customer access to a comprehensive health ecosystem and service capabilities through its Niva Bupa Health mobile application and website.

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 ₹5,499.43 crore in fiscal 2024.

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