Niva Bupa Health Insurance Company has set the price band of ₹70-74 per share for its upcoming IPO, which will open on November 7 and close on November 11.
The IPO is a mix of a fresh issue of up to ₹800 crore and an offer for sale of up to ₹1,400 crore by Bupa Singapore Holdings Pte Ltd and Fettle Tone LLP. Currently, Bupa Singapore Holdings Pte owns a 62.19 percent stake and Fettle Tone LLP a 26.8 percent stake in the insurance company.
Proceeds from the fresh issue will be utilized to the tune of ₹1,500 crore for augmenting the capital base to maintain and strengthen solvency levels; and general business purposes.
The company has reduced the size of the issue as it earlier planned to launch a ₹3,000 crore IPO.
This will be the second independent health insurer to make an IPO, after Star Health & Allied Insurance Company.
Niva Bupa is one of the leading standalone health insurers (SAHI) in India, with a gross direct written premium (GDPI) of ₹5,494 crore in FY 2024.
The insurance company’s gross written premium (GWP) rose 37.68 percent to ₹5,607.57 crore in FY2024 from ₹4,073.03 crore in FY2023. Further, profit rose to ₹81.85 crore in FY2024, from ₹12.54 crore in FY2023.
