Niva Bupa Files DRHP For Its Rs 3,000 Cr IPO
Niva Bupa intends to utilise the net proceeds of Rs 2,200 crore towards augment capital base to strengthen solvency levels
Niva Bupa, a health insurer platform backed by True North filed its draft red herring prospectus (DRHP) with Securities and Exchange Board of India (Sebi) for its Rs 3,000 crore initial public offering (IPO).
According to DRHP, the IPO consists of fresh issues of up to Rs 800 crore and an offer for sale (OFS) of upto 2,200 crore by existing shareholders and promoters.
Notably, the largest shareholder in the company in British United Provident Fund (BUPA).
ICICI Securities, Morgan Stanley India, Kotak Investment Capital, Axis Capital and HDFC Bank are the book running lead managers to the offer.
Niva Bupa intends to utilise the net proceeds of Rs 2,200 crore towards augment capital base to strengthen solvency levels.
Besides, the firm will also get benefits on listing in the public market which will enhance the brand’s visibility and provide liquidity to the shareholders.
As of 31 March 2024, the gross written premium (GWP) stood at Rs 5,607.57 crore, up from Rs 4,073.03 crore the previous year, with 14.73 million active insured lives.
Notably, the growth rate of its GWP was 41.27 per cent CAGR between Fiscal 2022 and 2024. By 31 March 2024, there were 10,460 network hospitals, up from 8,562 on that day in 2022.
The amount of premium earned for FY24 was Rs 3,811.25 crore, up from Rs 2,662.75 crore the previous year. The total income for the fiscal year was Rs 4,118.63 crore. The year's net profit was Rs 81.85 crore as compared to Rs 1.25 crore in the previous year.
