Niva Bupa Health Insurance, led by private equity firm True North, has received approval from SEBI to launch its ₹3,000 crore IPO. The offering will include a fresh issue of ₹800 crore and an offer for sale (OFS) of up to ₹2,200 crore by current shareholders.
In the OFS, Bupa Singapore Holdings will sell shares worth ₹320 crore, and Fettle Tone will offload shares up to ₹1,880 crore. The funds raised through the fresh issue will primarily be used to boost the company’s capital base, with ₹625 crore allocated to strengthen its solvency levels and for general purposes.
Niva Bupa is the third-largest standalone health insurer in India, with its Gross Direct Written Premium (GDPI) in FY24 amounting to ₹5,499.43 crore. Its health insurance portfolio grew at an impressive rate, with the company’s overall GDPI seeing a 41.37% compound annual growth rate (CAGR) from FY22 to FY24, outperforming the industry’s average growth of 21.42%.
This IPO marks the second attempt by a standalone health insurer to go public in India, following Star Health & Allied Insurance. ICICI Securities, Morgan Stanley India, Kotak Mahindra Capital, and several other financial institutions are managing the issue.
The funds will be used to enhance the company’s capital and expand its business to continue its growth trajectory in India’s health insurance sector.
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