Niva Bupa IPO: Erstwhile-Max Bupa files DRHP for ₹3,000-crore public issue

Niva Bupa IPO: Niva Bupa, formerly known as Max Bupa, has announced plans to go public by filing a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) as the insurance company aims to raise ₹3,000 crore through an initial public offering (IPO) and an offer for sale (OFS). The company plans to raise ₹800 crore from a fresh issue and ₹ ₹2,200 crore through an OFS.

Through the OFS, Bupa Singapore Holdings Pte, which holds about 62.27 per cent stake in Niva Bupa, will offload its stake to raise ₹320 crore, and Fettle Tone LLP, which holds a 27.86 per cent stake in the company, will sell shares worth ₹1,880 crore.

The company has not disclosed the price band of the issue yet. ICICI Securities, Morgan Stanley India, Kotak Mahindra Capital Company, Axis Capital, HDFC Bank and Motilal Oswal Investment Advisors are the book-running lead managers of the Niva Bupa IPO, while KFin Technologies is the registrar of the issue.

The company intends to use about ₹625 crore of the net proceeds to boost its capital base to strengthen solvency levels; the remaining amount could be used for general corporate purposes.

Niva Bupa is a health insurance products provider. Bupa Singapore Holding Pte Ltd and Bupa Investments Overseas Limited are the promoters of the company.

For FY24, FY23 and FY22, its GWP (gross written premium) was ₹5,607.57 crore, ₹4,073.03 crore and ₹2,809.97 crore, respectively, representing a CAGR of 41.27 per cent.

"We intend to continue to grow our GWP through executing several growth initiatives and strategies, including by growing our portfolio of products, expanding our partnerships with network hospitals, further developing our health ecosystem platform, expanding our presence across India and deepening our distribution channels," the company said in its DRHP.

The company's total income for the financial year 2022 (FY22) stood at ₹1,884.5 crore, which rose to nearly ₹2,859.2 crore in FY23 and ₹4,118.6 crore in FY24.

Profit after tax for FY24 was ₹81.9 crore, significantly higher than the profit of ₹12.54 crore earned in FY23. The company had suffered a loss of ₹196.53 crore in FY22.

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