Niva Bupa's Launch to Market: IPO Set to Fuel Growth

Niva Bupa Health Insurance Company Ltd announced its IPO with a price band of Rs 70-74 per share, targeting a Rs 2,200 crore raise. The offering combines a fresh issue of Rs 800 crore and an offer for sale. Proceeds will bolster capital and corporate needs. Listing planned on BSE and NSE.

Niva Bupa Health Insurance Company Ltd, formerly Max Bupa, has set the price range for its forthcoming IPO at Rs 70-74 per share, aiming to raise Rs 2,200 crore. This offering will commence for public subscription on November 7 and close on November 11, with anchor investor bidding opening on November 6.

The IPO strategy includes a fresh equity issue targeting Rs 800 crore and an offer for sale totaling Rs 1,400 crore by company promoters. Initially, the company intended to secure Rs 3,000 crore but scaled back the issue size. Principal shareholders Fettle Tone LLP and Bupa Singapore Holdings will partake in the sale, reducing their stakes.

Niva Bupa plans to use the fresh issuance proceeds to enhance its capital base, strengthen solvency ratios, and meet general corporate expenses. The launch marks a significant milestone as only the second standalone insurer since Star Health & Allied Insurance to pursue public listing. Major financial entities like ICICI Securities and Kotak Mahindra Capital are leading the IPO, with shares to be traded on BSE and NSE.

(With inputs from agencies.)