Private health insurer Niva Bupa Health Insurance Company is gearing up for its ₹2,200 crore initial public offering (IPO), with dates now confirmed. The IPO will open for public subscription on November 7 and close on November 11. Anchor investors can place their bids starting November 6, while the company will announce its price band by November 4. Here’s a rundown of the IPO details, shareholding structure, and Niva Bupa’s recent financial performance.
IPO Structure and Share Sale Breakdown
The IPO comprises a fresh issue of equity shares worth ₹800 crore and an Offer for Sale (OFS) amounting to ₹1,400 crore. Under the OFS, Bupa Singapore Holdings Pte will offload shares worth ₹350 crore, while Fatal Tone LLP, part of the private equity firm True North, plans to sell shares valued at ₹1,050 crore. The proceeds from the new equity share issue will help Niva Bupa enhance its capital base and bolster its solvency, supporting future growth.
Key Dates for Investors
- Opening Date: November 7
- Closing Date: November 11
- Price Band Announcement: November 4
- IPO Allotment Finalization: November 12
- Listing on Stock Exchange: Expected by November 14
These timelines provide a clear path for investors interested in Niva Bupa’s public offering.
Shareholding Structure Before the IPO
Currently, promoters hold a 89.07% stake in Niva Bupa. This includes:
- Bupa Singapore Holdings Pte: 62.19%
- Fatal Tone LLP (True North): 26.80%
Public shareholders have a smaller stake:
- India Business Excellence Fund IV: 2.81%
- V-Sciences Investments PTE: 2.60%
- SBI Life Insurance Company: 1.3%
- A91 Emerging Fund II LLP: 1.03%
With a majority stake in the hands of its promoters, Niva Bupa has established significant backing from established investment players.
Financial Highlights for FY24
Niva Bupa showed notable financial growth in FY24, reporting a net profit of ₹81.85 crore, up from ₹12.5 crore in the previous year. This strong performance signals the company’s potential in the health insurance sector. However, the company’s operating profit for the financial year was ₹188 crore, down from ₹350.9 crore the previous year.
In the first quarter ending June 2024, Niva Bupa recorded a loss of ₹18.8 crore, though this was a considerable improvement from the loss of ₹72.2 crore reported for the same period in the previous year. The operating profit for this quarter was ₹23.2 crore, reflecting some recovery as the company moves into the current fiscal year.
How the Funds Will Be Utilized
The funds raised from the fresh issue will play a crucial role in strengthening Niva Bupa’s solvency ratio and financial stability. By investing in relevant financial instruments, the company aims to maintain a healthy capital base, ensuring it meets the regulatory requirements and supports future growth.
With a strong financial record and strategic backing from reputable investors, Niva Bupa’s IPO offers a significant opportunity for investors looking to gain exposure to India’s expanding health insurance sector. The upcoming IPO is poised to attract substantial interest, with anchor investors set to make their bids a day before the public opening.
