Niva Bupa Files DRHP for Rs 3,000 Crore IPO

Niva Bupa, previously Max Bupa, has revealed intentions to become a publicly traded company by submitting a draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) in order to raise Rs 3,000 crore through an initial public offering (IPO) and an offer for sale (OFS). The company intends to raise Rs 800 crore from a new offering and Rs 2,200 crore through an Offer For Sale (OFS).

Bupa Singapore Holdings Pte intends to sell its 62.27% majority stake in Niva Bupa for Rs 320 crore through an Offer for Sale (OFS). Additionally, Fettle Tone LLP, which holds a 27.86% stake, plans to offload shares valued at Rs 1,880 crore.

The price range of the issue has not been revealed by the company. ICICI Securities, Morgan Stanley India, Kotak Mahindra Capital Company, Axis Capital, HDFC Bank, and Motilal Oswal Investment Advisors have been chosen as the book-running lead managers for the Niva Bupa IPO, with KFin Technologies acting as the registrar for the offering.

The company plans to utilize approximately Rs 625 crore from the net proceeds to enhance its capital base and reinforce solvency levels; the rest of the funds may be allocated for general corporate objectives.

Niva Bupa provides a variety of health insurance options. Bupa Singapore Holding Pte Ltd and Bupa Investments Overseas Limited were the ones who set it up.

In FY24, FY23 and FY22, the GWP amounted to Rs 5,607.57 crore, Rs 4,073.03 crore and Rs 2,809.97 crore, with a compound annual growth rate (CAGR) of 41.27 per cent.

The company's earnings for FY22 were Rs 1,884.5 crore, increasing to almost Rs 2,859.2 crore in FY23 and Rs 4,118.6 crore in FY24.

In FY24, the net profit was Rs 81.9 crore, a substantial increase from the Rs 12.54 crore profit made in FY23. The company experienced a loss amounting to Rs 196.53 crore in the financial year 2022.