Niva Bupa Health Insurance Company has fixed the price band of ₹70-74 a share for its forthcoming initial public offering that will open on November 7 and close on November 11.
The IPO is a mix of fresh issue of up to ₹800 crore and an offer of sale up to ₹1,400 crore by Bupa Singapore Holdings Pte Ltd and Fettle Tone LLP. Currently, Bupa Singapore Holdings Pte owns 62.19 per cent stake and Fettle Tone LLP 26.8 per cent stake in the insurance firm.
The proceeds from its fresh issuance will be utilised to the extent of ₹1,500 crore for augmentation of capital base to maintain and strengthen solvency levels; and general corporate purposes.
The company has reduced the issue size as it was earlier planning to launch ₹3,000-crore IPO.
This will be the second standalone health insurer looking to float an IPO, after Star Health & Allied Insurance Company.
Niva Bupa is one of the leading standalone retail health insurers (SAHI) in India, with a Gross Direct Written Premium (GDPI) of ₹5,494 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.
